Key Points
- US has denied Australia's request to be exempt from a 25 per cent tax on aluminium and steel imports.
- Prime Minister Anthony Albanese has labelled the call "entirely unjustified".
- The Opposition has criticised the Albanese government for its failure to secure exemptions from US tariffs.
Anthony Albanese has been labelled "weak" by the Opposition after the United States imposed tariffs on Australia, a decision the prime minister called "entirely unjustified".
The Albanese government remains adamant it will continue to "engage constructively" to secure an exemption from the 25 per cent global levy on steel and aluminium imports.
Australia — like other countries — failed to win an exemption on the imports, while plans to introduce a 50 per cent levy on Canadian imports to the US were delayed after Ontario proposed, and then suspended, a tax on electricity exports to the US.
Last month, US President Donald Trump described ".
However, Opposition leader Peter Dutton said the move highlights a "shocking" failure by the Labor government.
"This is a bad day for Australia ... made even worse because the prime minister is on his knees and can't even get a phone call or a meeting with the president of the United States, our closest allies," he told reporters.
The Liberal leader went as far as to say, "yes, absolutely, I believe we can get a deal done with the Trump Administration," if he is elected.
The remarks followed a press conference by Albanese, who expressed disappointment at the US decision, stating the call was a poor way to treat a friend.
"Such a decision by the Trump administration is entirely unjustified," he said about the levy, which came into effect at 3pm AEDT.
"This is against the spirit of our two nations' enduring friendship and fundamentally at odds with the benefit of our economic partnership that has delivered over more than 70 years."
Overnight, White House press secretary Karoline Leavitt told Australian media in Washington the hoped-for exemption was off the table, .
"He [Trump] considered it and considered against it. There will be no exemptions," she told the outlets, including the ABC, in reports widely published on Wednesday.
"American-first steel. And if they want to be exempted, they should consider moving steel manufacturing here."
Prime Minister Anthony Albanese said the failure to secure an exemption was a negative step in Australia's relationship with the US. Source: AAP / Lukas Coch
A tariff is a tax imposed when foreign goods are imported into a country, often pushing up the price of a product to cover the extra fee. In contrast, a locally produced product would be levy-free and possibly cheaper.
Albanese said although it was "not a positive step" in the relationship with Australia's closest ally, he reiterated that no country had been granted an exception, with Canada staring down the barrel of a potential 50 per cent levy.
Australia had argued it should get an exemption because it imports more from the US than it exports.
An argument undermined after the Australian Bureau of Statistics data showed that in January 2025, Australia exported a record amount of gold worth US$2.9 billion ($4.6 billion), resulting in its first trade surplus with the US in decades.
Mining industry reacts to Trump's tariff decision, backing PM
Warren Pearson, CEO at the Association of Mining and Exploration Companies, said the impact won't be immediate as it will take time for the US to ramp up its production.
"If the Trump administration's desire is to protect US industry and aluminum steel, that's going to take quite a long period, so I think we'll continue to export aluminium steel," he told SBS News.
"It's just that American companies will be paying more for them in the immediate term, and over time we'll have to find other markets for our products as the United States increases its own capacity."
Pearson believes the government did its best to plead Australia's case, but ultimately, Trump had determined a blanket approach was more appropriate for the US.
"I really don't think there's much the Australian government, or any national government, could have done to receive an exemption in this space," he said.
Trump determined 'exemptions don't work'
On Tuesday, ex-Liberal prime minister Malcolm Turnbull warned that the chance of an exemption — like the one Australia enjoyed in Trump's first term as president — was low because the administration had regrets over concessions granted in its first term.
Foreign Minister Penny Wong said Trump's decision that "exemptions don't work" would be felt by American consumers.
"These tariffs will harm the American, the ordinary American, and the American economy," she told Sky News on Wednesday.
She echoed Albanese's sentiments, labelling the decision "unprovoked" and no way "to treat a friend and partner".
Australian Constructors Association chief executive Jon Davies said the looming tariffs meant uncertainty for the sector, after it was hit with material price rises after COVID-19 and the war in Ukraine.
He said costs associated with steel products could rise because of the tariffs, which would impact construction prices.
"Any additional hit to the construction industry at this time will be extremely problematic," he told the Australian Associated Press.
"It has no contingencies left to weather any significant impacts or downturns."
