By Renju Jose
SYDNEY (Reuters) -U.S. President Donald Trump has agreed to consider exempting Australia from his steel and aluminium tariffs, Prime Minister Anthony Albanese said on Tuesday after what he called a constructive phone call with Trump.
Trump said on Sunday he will introduce new 25% tariffs on all steel and aluminium imports into the U.S., on top of existing metals duties, in another major escalation of his trade policy overhaul.
“I presented Australia’s case for an exemption, and we agreed on wording to say publicly which is that the U.S. president agreed that an exemption was under consideration,” Albanese told reporters.
“But we’ll continue to engage quite clearly constructively … it was a very constructive and warm discussion again with President Trump.”
Albanese’s talk with Trump comes a day after Australia’s trade minister said Australia’s steel and aluminium exports to the U.S. created “good-paying American jobs” and were key to shared defence interests.
Albanese said he remained confident a deal could be reached with Trump.
“If you have a look at what we’ve achieved already, it’s been a tremendous start to the relationship,” Albanese said.
Foreign Minister Penny Wong attended Trump’s inauguration, while Defence Minister Richard Marles met U.S. Defense Secretary Pete Hegseth in Washington last week.
Marles is the first foreign counterpart hosted by Hegseth since his confirmation in the role.
Australia, a key U.S. security ally in the Indo-Pacific, shipped about $237 million worth of steel and iron products to the U.S. in 2023, and $275 million worth of aluminium in 2024, according to the United Nations Comtrade database.
Australian-processed steel was purchased by the largest U.S. military shipbuilder as Australia, Britain and the U.S. – partners of the AUKUS defence pact – seek to integrate defence supply chains, the Australian government said last year.
(Reporting by Renju Jose in Sydney; Editing by Sephen Coates)
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