Washington fury to Donald Trump's 'insult' to Australian people

A senior American politician has publicly criticized Donald Trump's imposition of tariffs on steel and aluminum, calling it an "insult" to Australia. Democratic Congressman Joe Courtney strongly condemned the tariffs, believing they would negatively impact Australia. These tariffs could strain diplomatic ties and hinder future collaborations between the two nations.

Congressman Courtney specifically mentioned the $798 million that Australia paid to the United States last weekend as the initial payment for the purchase of nuclear-powered submarines. He stated that imposing a 25% tariff on all steel products from Australia just two days after the payment is undoubtedly an unwarranted offense to the Australian people. Such actions could undermine trust and cooperation in crucial strategic partnerships.

Courtney is a key member of the House Armed Services Committee and a long-time supporter of the AUKUS agreement. His home state of Connecticut has shipyards that build Virginia-class submarines. Reportedly, Trump is considering an exemption for Australia from the steel and aluminum tariffs after a conversation with Australian Prime Minister Albanese. This potential exemption could alleviate some of the concerns raised by the tariffs.

Albanese stated in Canberra that he had a "very constructive and friendly discussion" with President Trump, and both agreed that the exemption matter was "under consideration." Albanese also pointed out that the United States has maintained a trade surplus with Australia since the Truman administration, with the trade volume ratio being approximately two to one. However, on the same day, Trump still signed an executive order in the Oval Office imposing comprehensive tariffs on all imported steel and aluminum. This discrepancy highlights the complexities of international trade negotiations.

Australia exports approximately $500 million worth of aluminum products to the United States annually, while iron ore and steel exports amounted to approximately $600 million last year. Furthermore, the indirect impact on other countries' steel production could cause even greater damage to the Australian economy, as iron ore is Australia's largest export, and most of the world's steel is manufactured from Australian iron ore. Australian Industry Group Chief Executive Innes Willox is cautiously optimistic about obtaining an exemption from the Trump administration's 25% tariff. He stated that Australia has ample reason to be granted an exemption, considering the important trade relationship, strong security cooperation, and free trade agreement between Australia and the United States. However, he also emphasized that the current situation involves dealing with a new President Trump, and uncertainty remains. Navigating these uncertainties will be crucial for maintaining a stable economic relationship.

It is understood that Albanese's call with Trump was their first conversation in three months.