Australia risks becoming a dumping ground for cheap steel as pressure mounts for the prime minister to meet with Donald Trump following his “unjustified” doubling of tariffs on steel imports.
Mr Trump on Saturday announced plans to increase tariffs on foreign imports of steel from 25 to 50 per cent to “further secure the steel industry in the United States”.
The decision could impact 100,000 Australian jobs, with the sector exporting more than $414 million worth of products to the US in 2024.
Its peak body says it will continue to work with the federal government to push for an exemption from the Trump administration.
“The subsequent disruptions to global steel trade could see Australia become a dumping ground for imported steel,” Australian Steel Institute chief executive Mark Cain said.
“And it could exacerbate the surge in imported low-priced steel that is damaging the industry.”
Trade Minister Don Farrell says the tariffs are unjustified and not the act of a friend.
“They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade,” he said on Saturday.
“We will continue to engage and advocate strongly for the removal of the tariffs.”
Opposition trade spokesman Kevin Hogan said the latest move was concerning for Australian jobs
The coalition expected the US to honour its obligations under both nations’ free trade agreement, he added.
“The Albanese government needs to double its efforts to protect our steel industry and local jobs for our steel workers,” Mr Hogan said in a statement.
“This is why it is imperative that the Australian prime minister personally meets with President Trump … to develop a personal rapport with the United States president and protect Australian industries.”
Labor has sought to temper expectations on whether it can land a deal with the US to remove the tariffs, like it did after nine months of lobbying in the first Trump administration.
The US imported 289 product categories in 2024, costing $US147 billion ($A229 billion), with nearly two-thirds of those aluminium and one-third steel, according to Census Bureau data from the US International Trade Commission.
The 25 per cent tariffs on steel and aluminium were among the earliest implemented following Mr Trump’s return to the White House in January and came into effect in March.
Australia will continue to push for Mr Trump to drop his tariffs after a US federal court blocked his Liberation Day taxes on imported goods from going into effect.
Goods from Australia are subject to a 10 per cent baseline tariff, while all steel and aluminium imports to the US face 25 per cent tariffs before Mr Trump’s latest announcement.
The New York-based Court of International Trade found the US president had overstepped his authority by imposing the tariffs.
The administration launched an appeal, decrying “unelected judges” should not decide how to address a “national emergency”.
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