The pressure is on the Albanian government to guarantee a tariff exemption after President Donald Trump has announced a 25 percent tax on all steel and aluminum imports for the US.
Trump announced that the rates on imported metal would apply broadly without exemptions, during a media conference on board Air Force One while he flew to the Super Bowl in New Orleans.
“Every steel that enters the United States will have a rate of 25 percent,” he told reporters on Monday morning (AEDT).
Prime Minister Anthony Albanese has confirmed that he has 'planned' a phone call with Trump to discuss the steel and aluminum rates.
The Benchmark S&P/ASX200 of the Australian Share Market was 0.5 percent weaker, which caused an estimated loss of $ 15 billion after the announcement.
A rate for Australian goods would be a 'face in the face' for the domestic industry and the US-Australian Alliance, Australia Industry Group Chief Executive Innes Willox.
“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.”
President Donald Trump announced that the rates on imported metal would apply broadly without exemptions, during a media conference on board Air Force One while he flew to the Super Bowl in New Orleans
Anthony Albanese is forced in crisis talks with Donald Trump
In 2018, Australia received an exemption of 25 percent American rates for steel and 10 percent import tax on aluminum after the then Prime Minister Malcolm Turnbull Out pointed them from us.
Canada, Mexico, the European Union and the UK also received exemptions about steel and aluminum rates.
But this time President Trump has imposed broader rates, although the Albanian government has made the same point about the American trade surpluses with Australia that stretched until 1952.
National leader David LittleProud said that urgent conversations were needed, with the fruitless approach to Labor with the ability of the former coalition government and then send ambassador Joe Hockey to negotiate with the US seven years ago.
“We could send Joe Hockey there to be able to give a convincing argument about cutting Australia,” he told Sky News on Monday.
Mr LittleProud said that the current Ambassdor of Australia in Washington, former Prime Minister Kevin Rudd, turned out to be a liability.
'Unfortunately we have an ambassador who has made contemptuous comments about the president. And we have a prime minister who made contemptuous comments about the president, “he said.
Spokesperson Kevin Hogan of the opposition trade agreed and said that it was crucial for the government to ensure that the Australian industry receives an exemption from the rates.
“A critical component was a strong ambassador – we had ambassador hockey that helped Australia to successfully negotiate exemptions from the American steel and aluminum rates,” he said.
Trump's announcement may affect steel workers at Port Kembla (Bluescope staff depicted), near Wollongong, and Whyalla, in South Australia, together with aluminum manufacturers in Newcastle
'The ambassador in the US is one of the most critical diplomatic roles that Australia has. Albanian by hand Kevin Rudd selected for this position. Albanians and Rudd have a big work to do here. '
The announcement of President Trump was a day after the Deputy Prime Minister of Australia and Minister of Defense Richard Marles met the American Minister of Defense Pete Hegseeth.
“The fact that this advice was given the day after our Deputy Prime Minister was in Washington to transfer billions of dollars to secure the Aukus Submarine deal is particularly disturbing,” Willox said.
Commsec Chief Economist Ryan Felsman said that the Australian consumers would probably pay more for imports, because the US rates weakens the Australian dollar, now 62 US cents worth 62 US.
“You have those underlying cost increases that may influence the consumer,” he said Daily Mail Australia.
Pepperstone head of research Chris Weston said that Australia's exposure to the American market was not huge, so the effect of 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 rates can even be useful.
“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, where the Australian company also produced steel in the United States.
“Bluescope is fairly well insulated from the rates,” said Mr. Felsman.
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.
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.”
Trump's announcement may influence steel workers in Port Kembla, near Wollongong, and Whyalla, in South Australia, together with aluminum manufacturers in Newcastle north of Sydney.
Treasurer Jim Chalmers was hopeful last week Trump would continue to exempt Australia from his broad rates.
'We are convinced that we can navigate these changes that come from DC. We are well placed, we are well prepared, “he told ABC News Breakfast on February 4.
'The Americans have a trade surplus with us, they have done it since the Truman government, I think in 1952, a considerable trade surplus.
“Our relationship is mutually beneficial, and all the conversations we will have with our American counterparts will be sure that this really important economic relationship remains favorable for both parties.”
In 2023, the United States had a trade surplus of $ 17.7 billion goods with Australia, which would be worth $ A27.2 billion against today's exchange rate.
The United States are the third largest two-way trade partner in Australia, but only the fifth largest export market behind China, Japan, South Korea and India, which are larger buyers of Australian iron ore and coal.
Although Trump had campaigned in 2024 to reintroduce high tariff barriers, he had also given Hints since he came to office that rates could be used as a negotiating tactics about border policy, in an attempt to force Canada and Mexico the flow across the border illegal immigrants and drugs such as Chinese made fentanyl from the border of his border.
During his first term in the White House, he repeatedly expressed concern about US trading partners who sold more goods to the US than bought them.
The wider rates of the Trump administration in 2025 have been set to mark the most punitive input restrictions since the Hawley Tariff Act from 1930.
China imposed heavier rates at Australia during the pandemic during the fact that he had a free trade agreement with Australia since 2015, after which Premier Scott Morrison called for an investigation into the origin of Covid.
