Australian companies face allegations from the Trump administration regarding the dumping of inexpensive aluminium in the United States, complicating efforts by the Australian government to secure tariff exemptions. Peter Navarro, a senior official in Donald Trump’s administration, emphasized the necessity of the 25% tariffs on steel and aluminium, stating they are vital for protecting American jobs and industries. He declared that the U.S. would no longer tolerate being a “dumping ground” for subsidised and unfairly traded aluminium products.
Navarro accused Australia and Canada of engaging in significant attacks on U.S. industry, likening their tactics to those of strategic rivals such as China and Russia. He noted that Australia’s subsidised smelters operate at below cost, which he suggested gives them an unfair advantage in the aluminium market, further distorted by Australia’s ties to China.
Data from the United Nations COMTRADE highlights Australia’s substantial trade with the U.S., with exports of iron and steel valued at approximately $378 million (US$237 million) in 2023, while aluminium exports reached around $503 million. In light of looming tariffs set to be implemented, Treasurer Jim Chalmers recently met with U.S. Treasury Secretary Scott Bessent in an effort to obtain an exemption.
Chalmers addressed the necessity of the Australia-U.S. partnership at the Australian Super Summit, underscoring a significant trade surplus in favour of the U.S. and the potential contributions of Australian superannuation funds. Previously, former Prime Minister Malcolm Turnbull successfully negotiated exemptions during Trump’s first term, but there is pressure on the Albanese government to achieve similar outcomes.
Navarro pointed out that prior agreements to limit exports were effective before exports surged under President Biden. In a recent statement to Sky News, Chalmers acknowledged the challenges ahead, indicating that securing an exemption this time around could prove difficult for Australia.