In a major blow to the Albanese Government and metals producers, US President Donald Trump has ruled out giving Australia an exemption from tariffs on our steel and aluminium exports.
This decision comes despite Trump's earlier promise to give "great consideration" to an exemption for Australia.
What Does This Mean for Australia?
A 25 per cent tariff on metal and steel is set to start on Thursday, Australian time. This move is expected to have significant implications for Australia's metals industry.
The Albanese Government has been working hard to secure an exemption, but it seems their efforts have been unsuccessful.
"America First" Policy Takes Priority
During a press briefing, Trump's spokeswoman Karoline Leavitt said, "He considered it and he considered against it."
Trump himself has made it clear that his "America first" policy takes priority, saying, "America first steel. If they want to move their steel manufacturers here, they're welcome to do so."
A Setback for the Albanese Government
The Opposition is expected to seize on Labor's inability to get an exemption, particularly given that the Coalition was able to secure a tariff exemption from the US in 2018.
Housing Minister Clare O'Neil has downplayed the impact of the tariffs, saying that Australia will continue to have a "very strong and very resilient economy" regardless of the outcome.
Trade War with Canada Escalates
Meanwhile, Trump has been engaged in a trade war with Canada, with tariffs on steel and aluminium set to increase from 25 per cent to 50 per cent.
However, after negotiations with Ontario Premier Doug Ford, Trump has indicated that he may reduce tariffs on Canada.
What's Next?
The situation is still unfolding, with the Albanese Government saying that they "remain in discussion with the United States Administration" and will have more to say on the matter.
One thing is certain, though - the tariffs on steel and aluminium will have significant implications for Australia's economy and trade relationships.
