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“We’re obviously really disappointed with this, I would say though, we’ll keep advocating to the United States on this issue. Last time around, it was nine months before we got an exemption in relation to steel and aluminium out of the Trump administration in its first term,” Marles said.
“We’ll keep pressing the case. We’ll keep diversifying our own trade, but there’s no hiding this, we’re really disappointed with the decision.”
Deputy opposition leader Sussan Ley blamed Albanese for the tariffs, arguing he should have had a face-to-face meeting with Trump.
“This government just hasn’t done enough … it’s bad news for Australian jobs, Australian industry,” she told Sky News.
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“All of the other leaders of the Quad and AUKUS, Japan, India, the UK, travelled to the US, and they had face-to-face meetings and they did what they needed to do. They advocated fiercely in their country’s interests … well, where has the prime minister been?
“We would expect a prime minister of Australia to advocate just as fiercely in our national interest, to travel to the US to have those face-to-face meetings.”
The Albanese government made a concerted attempt to avoid the tariffs, pursuing a carve-out similar to that granted to Malcolm Turnbull when he was prime minister during Trump’s first term.
Treasurer Jim Chalmers flew to Washington to meet his US counterpart, Scott Bessent, while Australian ambassador to the US Kevin Rudd met Commerce Secretary Howard Lutnick last Friday to plead Australia’s case.
However, Trump’s advisers played down the chance of an exemption in recent days. White House National Economic Council director Kevin Hassett said the president did not like exemptions generally, and Leavitt indicated on Tuesday that no country would receive one.
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The Australian embassy in Washington was contacted for comment.
While the tariff decision will be a feature of the coming federal election campaign, it is already weighing on the global economy.
Confirmation of the tariffs roiled through world equity and foreign exchange markets. The Dow Jones Industrial Average shed another 1.1 per cent overnight and is now more than 10 per cent down from when Trump first announced his tariff plans in early February. The ASX is down 8 per cent over the same timeframe and lost 1 per cent on opening on Wednesday.
Most currencies increased in value against the US dollar on fears about the strength of the American economy. At one point, the Australian dollar pushed through US63¢ before edging below that mark early on Wednesday.
Economists with ANZ Sophia Angala and Adelaide Timbrell said the direct effects of the tariffs were likely to be small, noting South Korea was Australia’s largest steel and aluminium market, accounting for 19.4 per cent of total exports of the metals.
But they warned an escalation of trade tensions, including Trump’s plan for further tariffs beginning next month, would be more challenging for the Australian and global economy.
“As a trade-exposed economy, the largest tariff-related risk for Australia arises from a potential escalation of trade tensions. On the more extreme end, a trade war could lead to supply chain disruptions that increase the price of goods imports, negatively impacting domestic incomes and offsetting disinflation momentum,” they said.
One of the affected Australian companies, BlueScope, said in a statement that it was disappointed that an exemption similar to that negotiated by the Turnbull government in 2018 had not been put in place.
“We are working closely with the Australian trade and diplomatic staff in Canberra and in Washington DC, and with a wide range of senior representatives in Congress to ensure the BlueScope investment proposition is fully understood,” a spokesperson said.
Australia’s largest aluminium manufacturer, Capral, has been in business for 80 years producing extruded aluminium for construction and window frames. Chief executive Tony Dragicevich said imports already supply about 30 per cent of the local aluminium extrusion market, and he expects Trump’s tariffs will increase competition.
“There is no doubt that tariffs will have an impact on the international trade flows, and some of that product will need to find a new home,” Dragicevich said.
Capral employs 1100 people across six manufacturing plants and 22 distribution centres, pulling in $650 million in annual revenue. He said the company struggles to compete with imports.
Trump and Musk speak to reporters near a red Model S Tesla vehicle at the White House.Credit: AP
“It’s tough … we’re paying internationally high wages for quality staff here in Australia, and we’re competing against very low labour cost countries,” Dragicevich said.
Markets have also been affected by the conflicting messages coming out of the White House about Trump’s tariff plans.
Overnight, Trump threatened to impose a 50 per cent tariff on Canadian steel and aluminium imports after the provincial government of Ontario vowed to slap a 25 per cent surcharge on electricity destined for America.
“Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why?” Trump posted on his TruthSocial website.
“And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come!”
However, by Tuesday afternoon, the Ontario threat was suspended. The province’s premier, Doug Ford, and US Commerce Secretary Howard Lutnick released a joint statement saying they had a productive conversation and would meet in Washington later in the week.
Trump then rescinded his threat of a 50 per cent tariff. Despite that change, Canada – which is the single largest supplier of aluminium to the US – still faces a 25 per cent impost.
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