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Donald Trump has unloaded yet another bombshell on global markets, announcing that metal imports into the United States – from all countries, including Australia – could be hit with a 25% tariff.
The President mentioned two metals in particular focus: Aluminium and steel. The latter is one the U.S. imports from Australia, to the tune of $640 million a year.
Trump had also issued tariffs on steel and aluminium during his first term in office, prompting then-Prime Minister Malcolm Turnbull to press for an exemption for Australia, based on the two countries’ solid defence relationship, in addition to Australia’s trade surplus with the U.S.
It is expected that similar diplomatic pressure will be enacted by Prime Minister Anthony Albanese. (He has not spoken with Trump since November 2024.)
Currently, the U.S. charges zero tax on steel, iron ore, or aluminium from Australia.
The issuing of tariffs has been key to Trump’s early weeks in the White House, coming on the back of an election campaign in which he said that tariff was “the most beautiful word in the dictionary.”
In the first days after his inauguration, the President focused attention on Mexico and Canada – slating tariffs of 25% on imported goods from these countries, although announcements to this effect have been postponed.
Nevertheless, an additional tariff of 10% on all goods coming from China was actually announced – this being lower than expected – prompting retaliation from Beijing; China then declared any U.S.-originating goods like liquefied natural gas, coal, crude oil, farm equipment, and some automotive goods would be subject to tariffs of between 10 and 15%.
The latter tariffs – to go into effect on Monday – account for $14 billion worth of goods, with this development indicating a trade war between the two countries will not be cooling off any time soon.
An additional volley has come from German Chancellor Olaf Scholz, who warned the European Union would act quickly if Trump issued tariffs against EU goods.
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