Australian Prime Minister Anthony Albanese said Wednesday that U.S. tariffs on Australian steel and aluminum were unjustified, but his government would not retaliate with its own tariffs.
U.S. President Donald Trump said last month he was considering a tariff exemption for Australia, a free trade treaty partner that has traded with the United States at a deficit for decades.
A former Australian government secured an exemption with the previous Trump administration in 2018 based on arguments including that Australian steelmaker BlueScope employs thousands of workers in the U.S.
Albanese said he would continue to pursue an Australian exemption. The 2018 exemption took several months to secure.
“It has been foreshadowed that no country regardless of its relationship with the United States has been granted an exemption. Such a decision by the Trump administration is entirely unjustified,” Albanese said.
“Tariffs and escalating trade tensions are a form of economic self-harm and a recipe for slower growth and higher inflation. They are paid by the consumers. This is why Australia will not be imposing reciprocal tariffs on the United States,” Albanese added.
The U.S. officially increased tariffs on all steel and aluminum imports to 25% on Wednesday.
The U.S. decision not to exempt Australia was announced days after a spat became public between Trump and the former Australian prime minister who secured the 2018 exemption, Malcolm Turnbull.
Trump described Turnbull, who quit politics in 2018 after being overthrown as prime minister by his own government, as a weak and ineffective leader.
“Malcolm Turnbull, the former Prime Minister of Australia who was always leading that wonderful country from 'behind', never understood what was going on in China, nor did he have the capacity to do so,” Trump wrote on social media.
“I always thought he was a weak and ineffective leader and, obviously, Australian’s (sic) agreed with me!!!” Trump added.
Trump was responding to an interview Turnbull gave this week to U.S. media company Bloomberg in which the former Australian leader said Chinese President Xi Jinping would take advantage of the U.S. president's chaotic and erratic leadership.
“I think China will take advantage, massive advantage of Trump,” Turnbull told Bloomberg.
“What my prediction will be that President Xi will aim to be the exact opposite of Trump. Where Trump is chaotic, he will be consistent. Where Trump is rude and abusive, he’ll be respectful. Where Trump is erratic, he will be consistent,” Turnbull said.
“And what that will do is build trust with countries, and there’ll be many countries who, you know, looking at China on the one hand and Trump on the other, will find China a more attractive partner,” Turnbull added.
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25 Comments
GuruMick
Because Albanese and all of Australia are not some petty minded klutz like Trump.
Peter14
Because there is no reason to charge Australians more for goods. Trump is taxing the crap out of Americans and the US economy is faltering as a result.
Yearly steel and aluminum exports to the US is less than $1 billion AUD so its not worth the effort to retaliate.
GuruMick
Peter...but Aussie gold to US is going gangbusters because people fear the future economy under "Professor " Trump, the stable genius.
He belongs in a stable actually.
With all the other donkeys.
itsonlyrocknroll
President Trump never plays it safe, that is why Trump succeeds and will continue to do so, every time.
Why his detractors fail, hate him for it,
deanzaZZR
Maybe Australia would have more traction if the USA commander in chief actually knew what AUKUS was. Heck, Biden couldn't even remember the Aussie PM's name at the AUKUS celebration.
Stiff upper lip, etc. etc.
stormcrow
Probably worried about Trump doing an Ukraine on them if they’re attacked by anybody. Trump is heartless.
kumibon
It's a strange time when North Korea has 2 friends/allies in China and Russia, and the US seems bent on having just 1 friend/ally in Russia - doing a fine job in alienating friendly countries. Whatever happened to winning friends and influencing people?
Sh1mon M4sada
Australia didn't retaliate against China's $25 billion arbitrary tariffs bomb, and this didn't include many billions more in goods delayed, cancelled at port. wouldn't look good to retaliate over $1 billion for which some are against Australian companies operating in USA.
deanzaZZR
Who is going to attack Australia, East Timor? They are one of the most secure nations in the world yet stick their nose in other countries' business constantly.
HopeSpringsEternal
Australia has very good trade relations with the US, with no meaningful surplus or deficit for many years, plus a strong trade agreement = No DJT Tariffs for Australia
Jay
I don't think these tariffs will actually happen - like him or not, The Donald has always had a good relationship with Australia, and don't think he'd punish a staunch ally who plays fair.
If anything, the real roadblocks will come from dummies like Malcolm Turnbull or Kevin Rudd, who just can't seem to keep their smug mouths shut. If they start running their usual anti-Trump drivel, they could easily mess up what should be an easy future exemption. Let's hope they don't RUIN it for everyone - again.
HopeSpringsEternal
Australia is however nervous about DJT's Alaskan Gas exploration, which is led by Chris Wright the billionaire Energy Secretary who made his fortune in US shale gas.
Alaska will be by FAR largest LNG producer in world, along with natural gas piped to Alaska etc. Excess of $10 Trillion in today's dollars anticipated at a minimum in total project revenues, much will head to Japan, Taiwan etc.
Australia and US becoming close partners, US military rapidly expanding there and trade relations are excellent
GuruMick
Jay..."the Donald has always had a good relationship with Australia."
Are you aware the Australian Federal Police recommended against allowing Trump to submit an offer to run Sydney's first casino because of Trump casinos in the US having alleged ties with the "mob "
It is on the NSW Parliamentary record for those MAGA,s who doubt this fact.
Secondly....Trump would not dare to "visit " Australia because the protests would embarrass him.
Blacklabel
Of course they won’t retaliate, it’s not a smart thing to do in the reality.
GuruMick
Blacklabel...Trump is POTUS for about 3 plus more years. Thats a blip on the radar , or more accurately a fly spot on the wall paper.
Idiot leaders come and go....this idiot will go as well
Jay
@GuruMick
None of that matters Mickey, because you're severely underestimating the diplomatic power of our own Greg Norman. Sure, he may have stuffed things up on the back nine on more than one occasion, but when it comes to swinging deals, The Shark has got this. Him and The Donald go way back - if anyone can tee up a tariff exemption, it's him.
And Trump afraid to visit Australia? Yeah... nah... the bloke walked into North Korea. I think he can handle a couple of hipsters in Redfern or Fitzroy holding up some misspelled signs.
KnightsOfCydonia
Exactly!
let trump own this steaming pile all on his own, he doesn't need any help.
Nibek32
Not a problem. Americans are happy to pay extra for goods.
funkymofo
Probably why he’s been involved in over 4000 legal cases, bankrupted 6 times and convicted of sexual assault and fraud.
Blacklabel
You already trying to cope by cutting off a whole year already? Must be rough lol
mid January 2029 isn’t “about” 3 years. It’s “almost” 4 years.
Peter14
Not true. Australia has had a trade deficit with the US for decades, and in contravention of the AUSFTA agreement Trump has initiated tariffs on Australian goods.
Strong trade agreement and long time ally = DJT doesnt care and puts tariffs on Australia anyway.
We dont need allies like that. Allies need to be honest, dependable, reliable and fair. Trump makes America none of those things. Trumps term cant be over soon enough.
HopeSpringsEternal
You heard it here first, DJT WILL visit Australia this term, pretty sure his family and business interests will as well!
Peter14
I get to go to my first ever protest! I will be waiting at the secret exit from Melbourne Airport used for VIP's and felons.
HopeSpringsEternal
But what about Sydney or maybe an unnamed US Airbase? Good luck Peter, you'll need it, and don't forget to say to Elon as well, as Tesla's very popular Down Under!
Peter14
A quick search shows no plans for Trump to travel down under. FYI there are no US air bases in Australia.
US regularly uses https://en.wikipedia.org/wiki/RAAF_Base_Tindal air base in NT and Richmond or Williamtown in NSW.
Most heads of state visiting Victoria land at Melbourne's Tullamarine international airport.