Trump slaps big tariffs on Australian steel and aluminium

US President Donald Trump has announced sweeping new tariffs on steel and aluminium imports, affecting all exporting countries, including Australia.

The new policy will impose a 25% tariff on Australian steel and aluminium exports, reversing an exemption that Australia had secured in 2018.

In 2023, Australia exported approximately $638 million (AUD) worth of steel and $505 million (AUD) worth of aluminium to the US, with aluminium exports declining to $114 million (AUD) in 2024.

Trump told media the tariffs are part of a broader policy to establish “reciprocal” trade measures, ensuring that countries benefiting from US trade policies do not “take advantage” of the American economy.

A formal announcement from the White House is expected on Monday, with further measures to be disclosed in the coming days.

The move has prompted panicked diplomatic responses from the Albanese government, with Trade Minister Don Farrell preparing to negotiate with US officials in Washington, D.C. Nationals Leader David Littleproud expressed concerns that Australia might not receive the same preferential treatment it did in 2018, particularly due to past remarks made by Prime Minister Anthony Albanese and Ambassador Kevin Rudd about Trump.

He urged the Albanese government to leverage strategic alliances, such as the AUKUS nuclear submarine deal, to maintain strong trade ties.

Meanwhile, Trump reaffirmed his stance on protecting US steel industries from foreign ownership, citing Japan’s interest in investing in US Steel rather than acquiring it outright.