The US is expanding tariffs on trade imports from Canada and Mexico to Australia and the EU. Photo: supplied
The Australian Workers’ Union says the US tariff on Australian steel and aluminium should spur the use of local steel in all construction projects.
AWU National Secretary Paul Farrow says that Australia is very good at making steel and aluminium.
“(US President Donald) Trump knows it and it’s about time we recognise it too,” Farrow says.
“Australian steel and Australian aluminium must be mandated for use in all Australian infrastructure and government buildings from this point onward.”
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Farrow describes a free market approach to procurement that was adopted 10 years ago as “naive” and that sticking to it today is “sheer idiocy”.
“If government money is being used to build, say, a wind turbine then the towers should be made from Australian steel,” he says.
“We know China and others have been dumping steel and aluminium below-cost on our market and we need to stop that now.”
He is calling for bipartisan support to keep below-cost foreign steel out of the country.
“Australia absolutely can and should be a green heavy manufacturing powerhouse of the 21st century,” he says.
“To get there we need to keep our industries rolling today through this hurdle; that means toughening up on procurement and anti-dumping measures.”
ASI REACTION
The Australian Steel Institute (ASI) says it will keep working with the Federal Government to secure an exemption from the US global tariff of 25 per cent.
ASI chief executive Mark Cain says the tariff is disappointing but says they will continue to lobby for an exemption.
ASI is the peak body for the Australian steel industry, representing 500 companies and 5000 members. It says the steel industry generates 100,000 jobs and $30 billion in annual revenue in Australia.
EU TARIFFS
The European Union has retaliated after the US also imposed tariffs of up to 25 per cent on steel and aluminium imports from the Union.
The US tariffs are worth US$28 billion (A$44.5bn) and were countered by €26bn (A$45bn) in counter-sanctions from the US including €18 billion (A$31.2bn) in new tariffs in addition to tariffs first imposed, but suspended, in 2018.
“We deeply regret this measure,” EU President Ursula von der Leyen says.
“Tariffs are taxes. They are bad for business and worse for consumers. They are disrupting supply chains. They bring uncertainty for the economy.
“Jobs are at stake. Prices will go up. Nobody needs that – neither in the European Union nor in the United States.”
The EU tariffs will kick off on April 1 and will take two weeks to be fully implemented.
Non-metal produce and goods are also likely to be targeted by the EU; this includes textiles, leather goods, home appliances, household tools, plastics, wood and agricultural products like poultry, beef, some seafood, nuts, eggs, sugar and vegetables.
