‘Slap in the face’: Australian manufacturers slam Donald Trump’s 25 per cent tariffs on steel, aluminium

The peak body for Australian manufacturers says the proposed 25 per cent tariff on all US imports of steel and aluminium would be a “slap in the face” for the industry and for the countries’ political and economic ties.

Innes Willox, chief executive of the Australian Industry Group, said President Trump’s proposal meant “nothing could be taken for granted… in a rapidly changing world” and worried that Australia’s strong political relationship was being jeopardised.

“We cannot be sanguine about one of our most important trade and investment links. Pollyannaish hopes that we would fly under the radar have proven to be sadly misplaced,” he said.

“That this advice has been given the day after our deputy prime minister was in Washington to hand over billions of dollars to secure the AUKUS submarine deal is particularly troubling.”

Mr Willox said it was a “national priority” to reverse the US tariff decision.

“It is now up to the Federal Government.. to protect Australian industry and producers from being caught up in a rapidly escalating global trade war,” he said.

Finance Minister Katy Gallagher said the Government would await further information but felt Australia was in a “strong position” given months of “good engagement” with the new administration.

She said if President Trump’s tariffs did hit Australia, that would “clearly have some impact” on local businesses, which she and Treasurer Jim Chalmers would be “watching closely”.

“I’d say we are engaging very proactively with the Trump administration. We believe there’s some very strong arguments around the mutually beneficial trade relationship between the two countries, and we’ll continue to do that,” she said.

Shadow Minister for Trade and Tourism Kevin Hogan said the aluminium and steel industry exports over $550 million and said it was concerning that Australia was blindsided.

“Richard Marles was just in the US. He needs to answer: was he aware about this and did he negotiate that Australia should be excluded from any tariffs and if not why not?”

Steel and aluminium tariffs were applied under the previous Trump administration, although Australia was exempted following negotiations with then-ambassador Joe Hockey.

The AIG was hopeful that that negotiations on tariffs under the new Trump administration were progressing well but it appears those talks have failed to have an impact.

“We worked with DFAT and trade negotiators during the previous Trump administration and have been doing the same with the new administration to seek to ensure there are zero tariffs for aluminium, steel and iron produced in Australia,” Mr Willox said.

“A tariff on Australian goods despite us having a long-standing free trade agreement with the United States and agreements around exemptions for Australian produced goods during the previous Trump administration would be a slap in the face for Australian industry and our mutually beneficial economic and security arrangement.”

Major steel producer Bluescope saw the writing on the wall during that period and has significantly expanded its operations to become the fifth largest producer in the country.

“BlueScope has been investing in the United States for 30 years. Most recently, we have spent $2 billion on acquisitions and brownfields expansion of our operations there. BlueScope is now the fifth largest steel producer in the US, employing 4,000 American workers,” the company told The Nightly.

“BlueScope abides by all trade rules and agreements. We will continue to work with the Trump administration and the Australian Government, as we await further details.”

The share market expects the tariffs will be beneficial to Bluescope, pushing shares in the company up 1.7 per cent in morning trade.