Australia’s hopes of being exempt from the US tariffs on global steel and aluminium appear to be fading, as the US President has strongly confirmed his commitment to a comprehensive tariff regime he believes to be “the greatest thing we’ve ever done as a country.” Speaking to reporters on Air Force One, President Trump stated that the US will gain hundreds of billions of dollars in tariffs, and become so wealthy that it will be difficult to know where to spend the money. He also mentioned the intention to recover much of the money that has been given away over several decades.

The White House stance has become firmer, with no exemptions expected to be granted, despite Australia’s intense lobbying efforts. Australia has argued that it is a US ally with a significant trade deficit with the US and should be exempt. However, previous exemptions granted to Australia in 2018 may have the opposite effect this time around.

Australia’s former Prime Minister, Malcolm Turnbull, recently stated in an interview that Trump’s chaotic behavior would benefit China and disadvantage the US. Trump responded by calling Turnbull a “weak and ineffective leader” who failed to understand the threat posed by China. Turnbull has since reiterated his comments, arguing that those who flatter bullies only encourage more bullying.

The US administration has insisted that steel and aluminium production is a national security matter and has condemned countries for undermining US industry by dumping subsidized products. Australia has been accused by the US trade adviser of dumping subsidized, below-cost aluminum into the US market. Australia’s Prime Minister and Treasurer are engaging with companies and making a case for an Australian carve-out from the tariffs.

Source: https://www.theguardian.com/australia-news/2025/mar/11/donald-trump-tariffs-plan-us-economy-australia-impact-exemptions