Australia is set to be hit with 25% tariffs on aluminium and steel exports to the U.S. after failing to secure a last-minute deal to receive an exemption.
A blanket tariff on the metal imports is due to come into effect at 3pm AEDT.
In a briefing to the ABC, White House Press Secretary Karoline Leavitt ruled out exemptions for all countries, including Australia.
Prime Minister Anthony Albanese said the measure is “disappointing” and “unjustified”.
Tariffs: explained
A ‘tariff’ is a tax on imports. It’s applied to foreign-made goods brought into another country, and paid by the importer.
For example: Country A and Country B make the same product. Country A wants its citizens to buy its own version of the product, not Country B’s, so it applies a tariff.
Importers in Country A now pay the tax when they bring in B’s product, and pass on the cost to consumers, making this version of the product more expensive to buy.
Australia
In 2024, the U.S. imported around $US270 million of Australian aluminium, and about $US400 million of Australian steel.
Last month, Trump announced plans to impose 25% tariffs on imports of aluminium and steel.
He made a similar order in his first presidency in 2017. At the time, Australia secured an exemption after months of high-level negotiations.
Your contribution ensures The Daily Aus can continue doing the work you love.
I want to give $10 monthly to help TDA keep doing the news.
Your details:
This time, Albanese said an exemption for Australia was “under consideration”.
Update
White House Press Secretary Karoline Leavitt confirmed to the ABC on Wednesday that Australia would not receive an exemption, hours before the tariffs were due to take effect.
“[Trump] considered it, and considered against it. There will be no exemptions,” Leavitt told the ABC.
Albanese said the measure was “disappointing”, but ruled out imposing reciprocal tariffs on the U.S.
“Our government will continue to put forward a very strong case for an exemption.”
Reaction
In response to the tariffs, Deputy Opposition Leader Sussan Ley told Sky News the Government “just hasn’t done enough” to strike a deal.
Ley criticised Albanese for not having a face-to-face meeting with Trump about the tariffs.
Business Council of Australia chief executive Bran Black urged a “cool-headed response” .
“It took eight months for the Australian Government to secure tariff exemptions under the last Trump administration,” Black said.
