Australia Faces U.S. Tariff Challenges Amid Trade Talks

Australia will not be exempt from U.S. steel and aluminium tariffs, as announced by the Trump administration. Despite a previous agreement to consider exemption due to trade surpluses, the decision was reversed. Australia continues discussions for exemption, amidst a mounting trade tension involving Canada.

Australia will face new U.S. tariffs on steel and aluminium, according to recent reports citing a White House official. The decision comes despite previous discussions to potentially exempt Australia, given the bilateral trade surplus with the United States.

White House spokeswoman Karoline Leavitt highlighted that if Australia seeks exemption, it should consider shifting steel manufacturing to the U.S. This marks a change from Trump's earlier stance during his first term as President, when Australia was exempted from such tariffs.

The upcoming tariffs, 25% on imported steel and aluminium from various countries, will intensify existing trade tensions. Australia, striving to secure an exemption, continues to engage U.S. officials, while also being a significant exporter of iron ore — the primary raw material for steelmaking.

(With inputs from agencies.)