Strength of United States-Australia relationship on show in tariff reprieve, expert says

US President Donald Trump’s decision to spare Australia from increased tariffs shows the strength of the bilateral relationship, an expert says, and could give the nation an edge in global trade.

While Mr Trump has raised tariffs against dozens of nations, he showed mercy on Australia and kept levies against most products at 10 per cent.

This means Australia has secured the lowest tariff rate of any US trading partner, defying speculation it would be hit with a higher levy because Prime Minister Anthony Albanese had not yet met face-to-face with Mr Trump.

United States Studies Centre research director Jared Mondschein said the result was not surprising given Australia imports more from the US than vice versa and it has a free trade agreement with America.

He said the decision highlighted the strength of the US-Australia relationship.

“A lot of people put emphasis on the political leaders meeting, but the alliance is far deeper, wider and more expansive,” he told AAP.

“It’s worth getting a meeting, but I just don’t think it’s an existential threat to the alliance to be unable to secure one.

“Securing a 10 per cent tariff rate is definitely a win for Australia.”

The development has been celebrated by Trade Minister Don Farrell as a vindication of Australia’s “cool and calm” diplomatic approach.

Senator Farrell has predicted it could give Australia an advantage over other trading partners whose goods have been slugged with higher tariffs.

“Australian products are now more competitive in the American market,” he told reporters.

For example, Australia and Brazil are two of the biggest beef exporters to the US.

The tariff rate on the South American nation’s goods has been hiked from 10 to 50 per cent, meaning its beef will become more expensive for American consumers, which could push them towards Australian products.

Senator Farrell revealed American forces had pushed Mr Trump to increase tariffs on Australian goods, but the president resisted the calls.

Mr Mondschein warned Australia not to get too comfortable.

“The only certainty in the Trump Administration is continued uncertainty when it comes to trade,” he said.

“In this Administration, probably more than any other administration in modern history, there are a lot of folks who are pretty protectionist.”

The Federal Government has said it would continue calling for a complete tariff exemption, but no trading partner has been able to achieve this.

Opposition trade spokesman Kevin Hogan said the tariff decision was driven by the US having a trade surplus with Australia, “not because of any effort from the prime minister”.