Canberra, February 10, 2025: The Australian government is pushing for an exemption from the 25% tariffs on steel and aluminium imports imposed by U.S. President Donald Trump, arguing that Australian exports play a crucial role in supporting American jobs and defence ties.
Trade Minister Don Farrell emphasized that Australian steel and aluminium contribute to “thousands of good-paying American jobs” and are integral to the U.S.-Australia defence relationship. Australian officials have been engaged in diplomatic efforts for months, seeking a waiver similar to the one granted during Trump’s first term in 2018.
Trump’s latest trade move, announced on Sunday, imposed a blanket 25% tariff on all steel and aluminium imports, marking another step in his protectionist economic policies aimed at revitalizing U.S. manufacturing. This has sparked concerns among key U.S. allies, including Australia, which is now intensifying its lobbying efforts.
Prime Minister Anthony Albanese confirmed that he plans to raise the issue directly with Trump in an upcoming conversation. Meanwhile, Defence Minister Richard Marles has been in talks with U.S. officials in Washington, discussing economic and security cooperation.
Australia’s case for exemption is strengthened by its deep defence ties with the U.S., particularly under the AUKUS pact. The country recently made its first $500 million payment for U.S. nuclear-powered submarines, a deal designed to enhance both nations’ defence capabilities. Additionally, Australian-processed steel is a key component in U.S. military shipbuilding, further reinforcing its strategic importance in American supply chains.
The tariff announcement has had mixed economic implications. Shares of Australian steelmaker BlueScope Steel, which operates a major mill in Ohio, saw a nearly 2% rise, as analysts speculated that U.S. production facilities might benefit from the trade restrictions. BlueScope, which employs around 4,000 American workers, is central to Australia’s argument that its steel and aluminium industries actively support U.S. employment.
While Australia remains hopeful about securing an exemption, Trump’s broader trade strategy and geopolitical considerations will ultimately determine the outcome of its request.
