Trump will give ‘great consideration’ to sparing Australia from tariffs – but his officials have other ideas

Peter Navarro, a key architect of the tariffs imposed in the first Trump presidency and a top adviser in the new administration, said the new tariffs “would put an end to foreign dumping, boost domestic production and secure our steel and aluminium industries”.

“This isn’t just about trade, it’s about ensuring that America never has to rely on foreign nations for critical industries like steel and aluminium,” he said.

Amid the mixed messages over exemptions, Trump said he would hold meetings over the coming four weeks to discuss other trade moves to protect carmakers and pharmaceutical companies.

The US and Australian sides have offered no clarity on the steps toward a final decision on any carve-out, leaving Australia exposed to the unpredictable nature of the Trump administration when the president is imposing major trade barriers on China, Canada, Mexico and the European Union.

Albanese revealed the talks with Trump on Tuesday morning in Canberra, shortly after the phone call, and emphasised his message to the president about Australian investment in the US and how it would create American jobs.

Loading

“I presented Australia’s case for an exemption and we agreed on wording to say publicly, which is that the US president agreed that an exemption was under consideration in the interests of both our countries,” Albanese said.

Albanese also revealed a gathering at the Australian embassy in Washington, DC, on February 24 and 25 with “senior US representatives” joining Australia’s ambassador to the US Kevin Rudd and others.

The timing makes it challenging for Foreign Minister Penny Wong or Trade Minister Don Farrell to attend given the Senate meets that week for estimates hearings.

While the Coalition has questioned whether Rudd should remain ambassador because of private criticisms of Trump he made before he took up his diplomatic post, Albanese dismissed a question about Rudd’s position.

“What I envisage is continuing our act to respond diplomatically – that’s how you get things done,” Albanese said.

Asked about the next steps in the negotiation, Albanese said: “We’ll continue to engage diplomatically, and we, of course, will use all of the human assets at our disposal. Australians will always stand up for Australia’s interests, and we will do that, we will continue to put the case.”

However, the prime minister avoided being too positive when asked if he was confident the exemption would be granted.

“The words that I’ve used are the words that I’ll stick to. And it’s appropriate when dealing with the president of the United States to not speak on his behalf,” he said.

“They are the words that are agreed. They’re the words that I’ll stick to. And I can say, though, that it was a very positive and constructive discussion.”

Opposition Leader Peter Dutton held a snap press conference in Canberra warning the US would damage the relationship with Australia if it imposed trade barriers.

“I want there to be a very clear message to the Trump administration that we believe this tariff should not be put in place and if it remains in place I believe it would damage the relationship between the United States and Australia,” he said.

Loading

Trump flagged his plan on Sunday in the US when he told reporters he would target countries with matching tariffs if they tried to protect their industries, heightening the prospect of a trade war.

Most Australian steel exports are shipped as Colorbond roofing from listed company BlueScope, based in Port Kembla in NSW, for the Californian market.

When Trump imposed tariffs on steel in his first administration, then-prime minister Malcolm Turnbull gained an exemption by telling Trump the tariffs would only increase the cost of roofing in California without saving American jobs.

Albanese noted on Tuesday that BlueScope had invested $5 billion in the US and its trade across the Pacific was good for American workers.

While Canada, Mexico and the European Union have canvassed tariffs on US exports in retaliation against Trump, Albanese played down the need for a similar reaction.

“What I’m concerned about is securing an exemption. I’m about positive relationships, and today’s discussion was another step in developing that positive relationship.”

Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up to our weekly Inside Politics newsletter.