Editorial
Donald Trump’s announcement of imposing a 25% tariff on all steel and aluminium imports into the United States is poised to have several direct and indirect effects on Australia.
Direct Impact
Australian steel and aluminium exports to the US will become more expensive for American buyers, likely leading to reduced demand. In 2023, Australia exported about $US237 million worth of steel and $US275 million in aluminium to the US. With tariffs, these products would be significantly less competitive.
Although Australia was exempted from similar tariffs during Trump’s first term, there’s no immediate guarantee of exemption this time. Current news indicates no exemptions initially, which could lead to immediate impacts on Australian exporters.
Without exemptions, Australian companies would certainly lose market share in the US, where they have operations and export significant volumes.
Indirect Impact
Higher costs for steel and aluminium imports or domestically sourced materials could lead to increased prices for goods using these materials in Australia, contributing to inflation.
I would speculate that industries in Australia that rely on steel and aluminium could face higher input costs, potentially affecting their profitability and employment.
If other countries retaliate against the US, global trade could become more protectionist, complicating Australia’s trade relationships and potentially leading to retaliatory measures against Australian goods.
The Australian dollar would most certainly be pressured downwards due to trade uncertainties, which can have broad economic implications, including higher import costs for other goods. The share market has already shown signs of reacting negatively to these tariffs, with significant losses reported. This could deter investment in Australian companies related to or dependent on steel and aluminium industries, which is the last thing the Albanese wants given their recent $2b investment in the aluminium industry.
What can we do?
The Albanese government is likely to engage in diplomatic efforts to secure exemptions, perhaps by leveraging the US-Australia Free Trade Agreement and the AUKUS security pact. However, the success of these efforts is not guaranteed, given Trump’s recent statements.
Australian businesses will need to look for alternative markets for their steel and aluminium exports or focus more on domestic production and consumption.
There could be a push for policy adjustments to support affected industries, possibly through subsidies, tax breaks, or other economic measures to mitigate the impact, but this is no certainty.
After all, these are uncertain times.
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In these “uncertain” times we could pop our head over the parapet, and quadruple the rent that USA pays{?) to operate its Pine gap spy base in the heart of our land.
Through this facility we engage our selves in the Genocide currently under way against Palestinians, and display our hypocracy when USA entertains a War Criminal when they should be locking them up.
Our “special” relationship with USA, and Israel, keeps us wrong footed, when we should be standing on our own two feet and reading the riot act in their direction.
I have little faith in Labor being “tough” with The Trump. More likley six loud squeaks then scuttling back into the mouse hole and quivering in fright.
Yes, they can have steel tariffs OR Pine Gap, but not both ! Even having t ask for an exemption is a slap in the face to the partnership we have with the USA – how rude!! not something you do to a friend.
GL, an arm chair critic can always have the answers, but in the real world, there are negotiations to enter into.
Bert,
I suppose you’re right and it’s possible that Labor will stand up Dictator Donald. Hm, I wonder what Der Spud would do in the same situation? Would he stand up to Trump or would his almost obsequious adoration be a hindrance? Maybe raising the ire of his beloved Gina scares him even more.
Anyway, tis time to put the ducks to shed and then go and watch the 1934 film The Lost Patrol.
From what I’m reading the opposition is blaming Albanese and Rudd for all this because they don’t have a good enough relationship with Trump.
They are pathetic.
Meanwhile, Vlad, Trumps banker, is busily putting another BRICS in the “wall”.
I think that it may be time to hunker/bunker down and look up cat recipes.
Jest sayin’😆
We’ll see, not sure if commodities like steel and aluminium exports to the US are that significant in the larger scheme of things, when the US has significant surpluses on the services we import from the US?
Why is it always “cat recipes” what’s wrong with “dog recipes”? And yes, I like cats more than I do dogs.
Roughly an hour or so after Albo spoke to Dictator Donald:
https://www.theguardian.com/australia-news/live/2025/feb/11/australia-politics-live-anthony-albanese-peter-dutton-trade-tariffs-steel-aluminium-trump-question-time-election-campaign-cost-of-living-ntwnfb
“It’s 25% without exemptions or exceptions. That’s all countries, no matter where it comes from, all countries. If made in the United States, however, the United States of America, there is no tariff, zero.
So if it’s made in the United States, there’s no tariff. All you have to do is make it in the United States. We don’t need it from another country.”
Then: “I just spoke to him. Very fine man. He has a surplus. We have a surplus with Australia. One of the few. And the reason is they buy a lot of airplanes. They’re rather far away and they need lots of airplanes.
We actually have a surplus. It’s one of the only countries which we do. And I told him that that’s something that we’ll give great consideration to.”
The crazy train thunders on…
Thank god for those aeroplanes.
Why cat recipes? Cats taste like chicken and dogs have to much vitamin A in their meat to be eaten regularly.
Exactly right Roswell, the word is ‘aeroplane’ not airplane!!
Anyhoo, I’m off to have knee replacement surgery in a couple of hours so if you don’t hear from me in the next day or so it didn’t go well 🙁
Best of luck, LOVO. Hope it goes well.
If we don’t hear from you we’ll assume that you passed away peacefully during surgery. I’ll see if Michael and Carol can publish an obituary notice.
What a pack of crawling snivelling gutless wonders!
https://www.theguardian.com/us-news/2025/feb/11/google-calendar-black-history-pride-month
I stopped using google after it started demanding that I turn off my script blocker and adblockers on Firefox. Much happier with DuckDuckGo.
Last year, Australia exported 223,000 tonnes of steel to the US, and 83,000 tonnes of aluminium.
Mr Trump’s senior counsellor for trade and manufacturing, Peter Navarro, on Tuesday rebuked the idea of an Australian exemption.”Australia is just killing our aluminium market,” he told CNN.
The aluminum industry in the United States in 2023 produced 860 thousand metric tons of aluminum from refined metal ore (primary production), at six smelters. In addition, US industry recycled 3.4 million tons of aluminum (so-called secondary production aluminum).
So are we killing the US aluminium market ?
I’m very surprised that Navarro can talk with his head shoved deep up Trumps arse…oh wait, his other end can spew bullshit just as well.
https://www.news.com.au/finance/economy/australian-economy/trump-adviser-australia-killing-the-us-aluminium-market/news-story/b900a464b4765324dae7dcec9e100239
Thanks Roswell, I am the Borg. 😃
Terence:
Navarro is clueless. Australian aluminium is about 2.5% of USAnia’s total annual usage; most of what they use is imported from other countries. Yet Navarro has insisted that Australia is the main reason for this particular tariff.
Both the dog and its wagging tail are totally disconnected from reality.