President Donald Trump agreed to consider an exemption for Australia of American tariffs on steel And aluminum after a phone call with Prime Minister Anthony Albanese, even after having initially said there would be no tax exceptions.
Albanese informed journalists on Tuesday in Canberra after his conversation with the president. The prime minister said he had presented the case of Australia and that he and Trump They had “agreed to write” to declare publicly that “an exemption was being considered for the benefit of both countries.”
Albanese, who must hold elections before May 17, has been under intense pressure of local legislators and executives to achieve tariff exemptions for steel exports and Australia aluminum to the US during Trump’s first mandate, Canberra undertook months of thorough negotiations with Washington to avoid similar taxes.
On Monday, when speaking in the oval office while ordering 25% tariffs on steel And to aluminum, Trump initially said there would be no exemptions, before adding that “would consider” some possible margin of maneuver for Australia.
“We have a surplus with Australia, One of the few countries that buy many planes, ”Trump told reporters in Washington. “It’s something we are going to take into account.”
The call between the president and the prime minister was the first since Trump began his second term and occurred in the context of the preparations for the United States to impose tariffs on both goods, countries and commercial blocks.
Albanese highlighted a key point in favor of Australia in his press conference.
“The United States has a commercial surplus with Australia from the Truman administration. It is approximately two to one in regards to trade between our two countries ”, said. “If imports from these products in the United States are observed, these are approximately 1% of steel imports and 2% of aluminum.”
The Albanese government had been working to reaffirm ties with the new US administration. Days after the November elections, the prime minister said Trump had assured him during a call that the two leaders would enjoy a “perfect friendship.”
Since Trump assumed the position, the Ministers of Foreign Affairs and Defense of Australia have traveled to Washington to hold meetings separately with their counterparts: Secretary of State Marco Rubio and Defense Secretary Pete Hegseth.
Albanese highlighted the contributions of Australian steel and aluminum exports to the United States on Tuesday.
“Our steel is an important input for the American manufacturing industry. Bluescope is the fifth largest steel manufacturer in the country. They have invested 5,000 million Australian dollars in the United States in several states. I think there are more than 30 different investments there”He said.
“Our aluminum is a fundamental input for manufacturing in the United States. Our steel and our aluminum are key supplies for the United States and Australian defense industries. ”
Trump has been intensifying conversations with key Asian allies. On February 7 he met with Japanese Prime Minister Shigeru ishiba in the Oval office and plans to meet with Indian Prime Minister Narendra Modi in Washington next week.
Vice -Prime Minister Richard Marles said the weekend that Australia had transferred the first payment of 500 million dollars to the United States to improve its industrial capacity as part of the Aukus Security Agreement. The funds will be used to accelerate the production of submarines of the Virginia class and other warships.
Under the Aukus, who was agreed by former president Joe Biden in September 2021, the United States and the United Kingdom will work with Australia to provide Canberra with a fleet of nuclear propulsion submarines. The agreement is widely seen as a measure to strengthen security ties among Western partners against the growing strategic competition of China.
