The potential tariff threat faced by Australian steel and aluminum manufacturers is not due to former Prime Minister Kevin Rudd's past criticisms of Trump. In fact, Rudd, during his tenure as Australia's Ambassador to the United States, was able to engage with senior figures in the Trump administration early on, suggesting his past remarks did not significantly impact Australia-U.S. relations. This demonstrates the continued importance of diplomatic ties even amidst differing political viewpoints.
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02-13, 2025The real issue lies in the trade arena and the assurances made by the former Coalition government. Concerns about the volume of Australian steel and aluminum exports have persisted within the Trump administration. While Australia previously secured a tariff exemption from the Trump administration, it was contingent upon Australia's commitment to limit its exports to the United States.
Following the tariff exemption, Australia's aluminum exports nearly doubled in 2019. This caught the attention of U.S. trade representatives, who suspected Australia might be used as a backdoor for other countries to export steel and aluminum to the United States. Although Australian officials acted swiftly, introducing new rules and unofficial export "quotas," doubts about Australia within the Trump administration were not entirely dispelled.
Trump administration official Navarro stated that Australian aluminum exporters "flooded our market," even though Australian aluminum imports accounted for only 2.5% of total U.S. imports. The Trump administration believes that Australia violated its previous commitments and, therefore, should not be granted another tariff exemption. Australia was even specifically criticized in the formal tariff proclamation signed by Trump this week.
Despite the Coalition's low-key approach to the matter, Nationals leader Littleproud confirmed that Australia did agree to export quotas and has exceeded them. Whether this was an accidental "overrun" or a broken promise, it has fueled the discontent of trade protectionists within the Trump administration. While this may not provide sufficient justification for imposing new tariffs, it explains why Navarro and others with strong trade protectionist views are urging Trump to impose tariffs on Australia.
