The impact of the rates of Donald Trump on the Australian steel industry is not expected to be huge – and for some metal producers, such as Bluescope steel, it can even be useful.
The government is busy guaranteeing a tariff exemption for local industry after President Trump has announced an impost of 25 percent for all steel and aluminum imports in the US.
But a rate for Australian goods would be a 'face in the face' for the domestic industry and the US-Australian Alliance, said the Australian industrial group Chief Executive Innes Willox.s)
“It is now up to the federal government to intervene quickly and to protect the Australian industry and producers against getting caught in a rapidly escalating global trade war,” he said.
“Turning these rates must be a national priority and the government must use all leverage at its disposal to reverse this quickly.”
The ministers of the Australian government have been meeting their incoming American counterparts for months and push the case for exemptions from potential rates.
While Minister of Defense Richard Marles has already met the American Minister of Defense Pete Hegseeth, Handelsminister Don Farrell has not been able to speak directly with his counterpart Howard Lutnick because he still has to be confirmed by the US Senate.
“Our bilateral economic relationship is mutually beneficial,” said Senator Farrell.
The pressure is on the Australian government to guarantee a tariff exemption for local industry after President Trump has announced an impost of 25 percent for all steel and aluminium imports to the US
“Australian steel and aluminum create thousands of well -paying American jobs, and are also the key to our shared defense interests.”
Pepperstone head of research Chris Weston said that Australia's exposure to the American market was not huge, so the impact of the rates would be relatively manageable in the large schedule of things.
The Australian exports of iron and steel to the US with a value of $ US237.5 million in 2023, while aluminum export $ US316.9 appreciated, according to the United Nations Comtrade database.
For some Australian metal producers, such as Bluescope Steel, the impact of the rates can even be favorable.
“If you are a direct producer of steel and you sell on the American market, you will of course take a hit of this,” said Mr. Weston.
“But if you buy steel on the market and use steel for your end products, there may be a negative hit in the short term for the steel price that your company can benefit.”
Bluescope shares climbed by more than two percent in Monday morning on the ASX.
In a statement, Bluescope said it would work with the Trump government and the Australian government, and noted that the company invested heavily in the US, stimulating American employment.
The Australian ministers of the government have met their incoming American counterparts for months and pushes the case for exemptions from potential rates
“We recently spent $ 2 billion on acquisitions and Brownfields extension of our activities there,” said a spokesperson.
“Bluescope is now the fourth largest steel producer in the US and has 4,000 American employees.”
It is estimated that $ 15 billion was wiped from the ASX200 during the first hour of trade – before he bounced back.
Economist Chris Richardson said that the most important implication of the rates for the reserve Bank of Australia and her decision to lower the interest rates for the first time in five years was whether they would have a greater impact on inflation or economic growth.
“I have been to the camp that says, for OZ Trump is more a growing than continuous inflation,” he said in a post on X.
“But both sides of the ledger are getting bigger.”
