Australia's hopes for US tariff exemptions dim as Foreign Minister Penny Wong calls it a difficult pursuit
From the early-mid month of February 2025, Australia has been actively seeking an exemption from the United States' 25 per cent tariffs on aluminium and steel, claiming the country's contribution to the US domestic market trade surplus as a key justification for securing an exemption. During this process, optimism briefly flickered in the Australian market when US President Donald Trump hinted at a possible reprieve, describing Australia's Prime Minister Anthony Albanese as "a very fine man." The hope was further fuelled following a positive phone call between Albanese and Trump on February 11, where they discussed the Aukus defence pact, critical minerals, and mutual foreign investments.
Albanese said after the call, "Our aluminium is a critical input for manufacturing in the United States. Our steel and aluminium are both key inputs for the US-Australia defence industries in both of our countries."
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