MELBOURNE, Australia — President Donald Trump indicated his willingness to contemplate an exemption for Australian steel and aluminum imports following a phone conversation with Prime Minister Anthony Albanese on Tuesday.
During this discussion, which was prearranged before Trump’s recent announcement of tariffs on these imports, Albanese advocated for such an exemption.
Trump mentioned that one of the considerations for potentially waiving these tariffs stems from the trade surplus the U.S. holds with Australia.
“We actually have a surplus,” he explained to journalists in the Oval Office. “It’s one of the only countries with which we do. I conveyed to (Albanese) that this is something we will seriously consider.”
The dialogue took place just after Trump had eliminated exceptions to his 2018 tariffs, imposing a minimum 25% tax on all steel imports, while increasing the aluminum tariff from 10% to 25%.
Earlier, Albanese had shared his efforts to make a case for an exemption, highlighting that both leaders had agreed on a public statement indicating that “the U.S. president acknowledged that an exemption was under consideration in the interest of our countries.”
“The agreed wording is what I will adhere to. I can affirm that the discussion was very positive and constructive,” Albanese remarked.
During Trump’s first term, Australia enjoyed exemptions from such tariffs.
Australia’s position hinges on the fact that it has maintained a trade deficit with the U.S. since the mid-20th century, along with the employment of thousands of workers in the U.S. by Australian steel producer BlueScope.
Moreover, Australia holds only a small share of the U.S. steel market.
Additionally, Albanese brought up the AUKUS agreement, established with former President Joe Biden’s administration, where Australia is set to acquire a fleet of submarines utilizing U.S. nuclear technology.
“Our steel and aluminum are crucial inputs for the defense sectors in both our countries,” Albanese emphasized.
Over the past weekend, Australia announced it had made the first of six scheduled payments, each totaling $500 million, to the U.S. under AUKUS to enhance U.S. submarine manufacturing capabilities.
Trump is looking to adjust U.S. tariffs on all imports to align with those charged by other nations as a response to the ongoing 10% tariffs he has imposed on China and subsequent retaliatory tariffs initiated by China starting Monday.
U.S. tariffs planned for Canada and Mexico remain on hold until March 1.
This telephone call marked Albanese’s second conversation with Trump since the latter took office. Following their exchange, Albanese noted that the “relationship is in good shape.”
