Steel, aluminium tariffs 'completely unjustified' Albanese says

Australian Prime Minister Anthony Albanese has publicly stated that the U.S. White House's decision to impose import tariffs on Australian steel and aluminum products is "utterly without merit," emphasizing that the Australian government will continue to strive for an exemption.

Prime Minister Albanese pointed out: "This runs counter to the spirit of our long-standing friendship and is fundamentally at odds with the benefits that our economic partnership of over 70 years has brought to both our nations. Australia does not impose tariffs on goods from the United States, and we also have a free trade agreement with the United States."

The Australian side has made it clear that it will not take retaliatory tariff measures. Prime Minister Albanese said: "Our government will continue to make strong arguments to secure an exemption. It is worth noting that the last time a similar situation occurred, it took us several months to obtain an exemption. We will advocate for Australian trade with the United States through various channels and at all levels."

Prime Minister Albanese also emphasized that Australia's steel and aluminum exports to the United States account for less than 0.2% of Australia's total exports. He stated: "This is not a friendly move, but it is important to note that this tariff is targeted at all countries." Previously, U.S. President Trump had ruled out the possibility of granting Australia an exemption.

White House Press Secretary Karoline Leavitt revealed to Nine Entertainment Co. that President Trump had considered the possibility of granting Australia an exemption but ultimately decided against it. Leavitt told reporters: "President Trump's tariff policy aims to achieve mutually beneficial and fair trade, prioritize American workers, and prevent them from being exploited by foreign countries around the world."

Australia recently recorded its first monthly trade surplus with the United States, which weakens a key argument for Australia to seek an exemption. About a month ago, President Trump had discussed the possibility of Australia receiving an exemption with Prime Minister Albanese. President Trump called Prime Minister Albanese "a very good man" and promised to "seriously consider" granting an exemption. In 2018, Australia did obtain a tariff exemption after months of diplomatic efforts, demonstrating that President Trump is willing to change his position with sufficient incentive.

Prime Minister Albanese stated after the announcement: "We do not consider this a final decision." However, high tariffs have been a prominent feature of Trump's second term, including those imposed on close trading partners Canada and Mexico. His main trade advisor, Peter Navarro, has also been publicly discussing this issue in recent weeks, claiming that Australia is launching a "frontal assault" on the U.S. aluminum market.

Prime Minister Albanese believes that tariffs will only increase costs for American consumers. He stated: "You cannot change the production of aluminum or steel in the United States overnight. Therefore, this decision will only increase the cost of American imports, and these costs will continue to be borne by Americans, not by Australians." The steel and aluminum tariffs took effect this afternoon.

President Trump is facing increasing pressure to come up with a credible economic growth plan after Monday's stock market plunge and further turmoil on Tuesday. So far, the President is doubling down on tariffs, citing Tuesday's stock market volatility as evidence that import tariffs are a valuable negotiating tool, even if they may trigger stock market turbulence. President Trump believes that tariffs are essential to transforming the U.S. economy, regardless of stock market fluctuations.

Investment bank Goldman Sachs has lowered its economic growth forecast for this year from 2.2% to 1.7%. They slightly raised the probability of a recession to 20%, citing that "the White House could choose to withdraw policy adjustments if downside risks begin to appear more severe." President Trump has sought to assure the public that his tariffs will provide some "transition" to the economy, with these taxes prompting more companies to begin the multi-year process of moving factories to the United States to avoid tariffs.

But in an interview aired on Sunday, President Trump did not rule out the possibility of a recession, raising alarm bells. President Trump has long relied on the stock market as a measure of the economy and his political standing, but he is turning a blind eye to it due to his continued determination to impose tariffs. After winning the election last year, he declared that he wanted his term to be viewed as starting from the election day of November 6, 2024, rather than from the inauguration ceremony of January 20, 2025, so that he could be praised for the post-election stock market surge.

President Trump has also repeatedly warned that there will be an economic freefall if he loses the election. President Trump said at a rally in Pennsylvania in August: "If I don't win, you're going to have a depression the likes of 1929. Have a good time."