Over the weekend, U.S. President Donald Trump doubled the tariffs imposed on imported steel and aluminium from 25% to 50%.
Australia exports hundreds of millions of dollars of steel and aluminium to the U.S. each year.
In response, Trade Minister Don Farrell has said these tariffs “were not the act of a friend.”
The tariffs will come into effect on Thursday.
Tariffs
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.
Steel and aluminium
On 10 February, Trump announced he would impose a 25% tariff on aluminium and steel, repeating a move from his first presidency.
Steel is used in many heavy industries, such as car manufacturing and construction. Aluminium is also used in car manufacturing, and in household items including pots, pans, and foil.
In 2024, the U.S. imported around $US270 million of Australian aluminium, and about $US400 million of Australian steel.
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Update
On Saturday, Trump posted on his social media platform Truth Social that he will double the steel and aluminium tariffs.
It followed a speech he gave at a steel plant in the U.S. state of Pennsylvania, where he said tariffs will “ensure that all steelworkers will keep their jobs and all facilities in the United States will remain open and thriving.”
Government data shows steel prices have risen by around 16% since January, when Trump took office.
The new tariffs will come into effect on 4 June.
Australia
Trade Minister Don Farrell told Australian media on Saturday that the tariffs were “unjustifiable and not the act of a friend.”
“[Tariffs] are an act of economic self harm that will only hurt consumers and businesses who rely on free and fair trade.”
Former Prime Minister Malcolm Turnbull successfully negotiated to avoid Trump’s previous planned tariffs in 2018.
Opposition
Shadow Trade Minister Kevin Hogan said the Government “needs to double its efforts to protect our steel industry and local jobs for our steel workers.”
The Coalition said it is “imperative” for Albanese to meet with Trump during the G7 summit this month in Canada “to develop a personal rapport” and “protect Australian industries.”
