Australian PM insists the country is complying with terms of trade with the U.S.; aluminium tariffs are unlikely

Reacting to a report from The New York Times, claiming that Trump administration was advised on imposing tariffs on Australian steel and aluminium, Australian Prime Minister Scott Morrison said on Monday that the country has been complying with the terms of the trade deal with the U.S.

It was reported that Trump was advised to import tariffs on Canberra considering the growing aluminium import from Australia to the United States over the past year. However, Morrison insisted that Australian aluminium exporters have not disregarded the trade deal with the U.S. after exemption last year. 

The New York Times report said that though Trump considered imposing tariffs on imports from Australia last week, he decided against it after opposition from military officials and the State Department. They opined that the move would affect the relationship with a top trade ally in the APAC region and could come at significant cost to the United States.

“We have an arrangement with the United States and we are working within that arrangement,” Morrison told reporters in Honiara, the capital of the Solomon Islands.

Australia’s steel and aluminium exports to the United States are valued at about A$500 million ($347.00 million) annually.

Australia has always been in the good books of Trumps as a loyal alley to the United States and it is getting support from the U.S. in its fight against growing Chinese influence in the Pacific region.  It is to be noted that Australia is working on cutting down China’s efforts in expanding its foothold in the Pacific through increased foreign aid.