US President Donald Trump has signalled he may exempt Australia from his new 25 percent tariffs on steel and aluminium after a phone call with Prime Minister Anthony Albanese.
Trump first announced the tariffs without exception on Tuesday but later acknowledged Australia’s trade surplus with the US.
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“I just spoke to him. Very fine man,” Trump said.
“We have a surplus with Australia, one of the few … I told him that [exemptions] are something we will give great consideration,” he added.
Albanese described the call as “positive and constructive” and confirmed both leaders had agreed to publicly state that the tariff exemption was “under consideration”.
“Our aluminum is a critical input for manufacturing in the United States,” Albanese said.
“We’ll continue to engage diplomatically,”
However, Albanese did not provide further details on the process for considering the exemption or the timeline for reaching a decision.
The tariff issue has sparked concern, with Liberal leader Peter Dutton warning that the move could damage the long-standing relationship between the two countries.
Dutton emphasized that Australia’s trade surplus with the US meant tariffs were unwarranted.
“Tariffs are not warranted against Australia because we have a trade surplus,” Dutton said.
Trade Minister Don Farrell is expected to travel to the US in the coming days to hold talks with his American counterpart over the potential exemption.
“My mum used to say every problem has a solution, you just need to find it,” Farrell said.
He told Sky News Australia Political Editor Andrew Clennell that he was desperately seeking a solution to the new tariffs.
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