MELBOURNE, Australia: Australia has strongly criticised the United States for imposing tariffs on its steel and aluminium exports, with Prime Minister Anthony Albanese describing the move as “entirely unjustified” and a form of “economic self-harm.”
The tariffs, set at 25 per cent, took effect on Wednesday as part of US President Donald Trump’s broader strategy to bolster domestic manufacturing.
Despite earlier speculation that Australia might secure an exemption, the White House confirmed that no country, including close allies, would be spared from the new measures.
Tariffs hurt American consumers
Speaking to the Australian Broadcasting Corporation (ABC), Albanese reaffirmed Australia’s commitment to its trade partnership with the United States but expressed disappointment over the decision.
“Australia has a close relationship with the United States. Friends should act in a way that reinforces that friendship. This is not a friendly act, but it has been imposed on every country, which is important to note,” he stated.
Albanese ruled out any retaliatory measures, arguing that tariffs ultimately hurt consumers and lead to economic instability.
“Tariffs and escalating trade tensions are a form of economic self-harm and a recipe for slower growth and higher inflation. They are paid by the consumers. This is why Australia will not be imposing reciprocal tariffs on the United States,” he said.
Foreign Minister Penny Wong warned that American consumers would bear the brunt of the new tariffs.
“Guess who will pay the price of this? It’s actually Americans, American consumers. These tariffs will harm the ordinary American and the American economy,” Wong told Sky News.
Describing the move as “unprovoked and unjustified,” she added, “This is not how you treat a friend and a partner.”
Australia had previously secured an exemption from similar tariffs under the Trump administration in 2018, partly by arguing that Australian steel manufacturer BlueScope provided jobs for thousands of American workers. However, this time, securing an exemption appears unlikely.
Arthur Sinodinos, who served as Australia’s ambassador to the US during Trump’s first presidency, advised Albanese to take a measured approach.
“The Trump administration believes in tariffs. He [Trump] says it’s the most beautiful word in the English language,” Sinodinos told ABC.
He noted that the possibility of an exemption was “less than 50 per cent” given the current political climate in Washington.
However, he suggested that Australia’s abundant mineral resources—such as lithium, cobalt, manganese, and tungsten—could provide leverage in negotiations.
“Australia needs to utilise these resources, and it will not deploy them with China. That could play a role in securing a future deal with the US,” Sinodinos explained.
Trump’s feud with former Australian PM
The tariff announcement came just days after a public spat between Trump and former Australian Prime Minister Malcolm Turnbull, who had brokered Australia’s 2018 exemption.
Trump took to social media to criticise Turnbull, calling him a “weak and ineffective leader” who failed to grasp the complexities of China’s global strategy.
“Malcolm Turnbull, the former Prime Minister of Australia who was always leading that wonderful country from ‘behind’, never understood what was going on in China, nor did he have the capacity to do so,” Trump wrote.
“I always thought he was a weak and ineffective leader and, obviously, Australians agreed with me!!!”
Trump’s remarks were in response to an interview Turnbull gave to Bloomberg, where he warned that Chinese President Xi Jinping would take advantage of Trump’s “chaotic and erratic” leadership.
“I think China will take massive advantage of Trump,” Turnbull said. “President Xi will aim to be the exact opposite of Trump—where Trump is chaotic, he will be consistent; where Trump is rude and abusive, he’ll be respectful; where Trump is erratic, he will be steady.”
Despite the current setback, Albanese expressed hope that Australia could still negotiate an exemption, noting that the 2018 exemption took several months to secure.
“It has been foreshadowed that no country, regardless of its relationship with the United States, has been granted an exemption. Such a decision by the Trump administration is entirely unjustified,” he said.
