SYDNEY (Reuters) – Australia will not be exempt from U.S. steel and aluminium tariffs that President Donald Trump’s administration will impose on Wednesday, Australian media reported, citing a White House official.
Trump agreed in February to consider exempting Australia from the tariffs in view of the U.S. trade surplus with the country, following a phone call with Australian Prime Minister Anthony Albanese.
But Trump has decided against it, Australian Broadcasting Corp reported, citing White House spokeswoman Karoline Leavitt.
“If they want to be exempted, they should consider moving steel manufacturing here,” Leavitt was quoted as saying.
Trump, during his first presidential term, exempted Australia from U.S. tariffs on steel and aluminium.
Tariffs totalling 25% on all imported steel and aluminium products into the United States originating from other countries will go into effect on Wednesday morning.
That would be 50% for Canada, Trump said on Tuesday, ramping up a burgeoning trade war with his northern neighbour. He said later he would likely lower them after Canadian officials agreed to talks.
An Australian government spokesperson said Albanese’s administration had been working hard at all levels of the U.S. government to secure an exemption.
“We remain in discussion with the United States administration, and will have more to say,” the spokesperson said by email.
A key U.S. security ally in the Indo-Pacific, Australia is a small global exporter of steel although it is the world’s largest exporter of the main steelmaking raw material iron ore. Australia accounted for 1% of steel imports into the U.S. and 2% of its aluminium imports.
(Reporting by Renju Jose in Sydney; Editing by Richard Chang)
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