Australia is seeking an exemption from newly imposed US tariffs on steel and aluminium, as Opposition Leader Peter Dutton warns the measure could harm the long-standing alliance between the two nations.
The debate over trade policy has also reignited political tensions within Australia, with Mr Dutton criticising Prime Minister Anthony Albanese for allegedly straining diplomatic relations with US President Donald Trump.
Us Considers Exemption for Australia
On Tuesday, President Trump signed an executive order imposing a 25 per cent tariff on steel and aluminium imports. The measure applies broadly, but the White House has indicated that Australia’s trade surplus with the US could be a factor in determining an exemption.
Prime Minister Albanese spoke with President Trump following the announcement, confirming that an exemption for Australia was “under consideration.”
“Tariffs are not warranted against Australia, particularly because we have a trade surplus with the United States,” Mr Dutton said in response. “I want there to be a very clear message to the Trump administration that we don’t believe that this tariff should be put in place.”
Opposition Leader Blames Government for Diplomatic Tensions
While supporting Australia’s bid for an exemption, Mr Peter Dutton placed the blame for any strain in the US-Australia relationship on the Albanese government. He argued that past comments from the Prime Minister and other senior Australian officials have complicated diplomatic efforts.
“You can’t just brush over the history of the judgements the Prime Minister has made,” Mr Dutton said. “He’s made shocking judgements. He talked about being scared of President Trump.”
The reference was to remarks made by Mr Albanese in 2017, when he was shadow transport minister, stating that President Trump “scares the shit out of me.”
Foreign Minister Penny Wong and Australia’s Ambassador to the US, Kevin Rudd, have also made past statements critical of President Trump. In 2021, Ms Wong said President Trump was “prepared to trash alliances and partnerships for personal political interest.” Mr Rudd, in 2022, called him a “traitor to the West” and “a problem for the world.”
Mr Peter Dutton suggested that such comments could influence the Trump administration’s decisions regarding Australia and the US Tariff. “ The president will have noticed those comments. I think it’s difficult when that’s the starting point in the relationship,“ he said.
Trade and Alliance at Stake
Beyond the economic impact of tariffs, Mr Dutton emphasised that the issue could affect broader ties between the US and Australia, including their security alliance. He pointed to military cooperation and economic partnerships as key reasons why Australia should not be targeted by the tariffs.
“I think there’s huge opportunity for employment and economic growth,” he said. “But when you apply the wet blanket of a tariff, it is detrimental to the relationship.”
While the US has not confirmed whether Australia will receive a US tariff exemption, the issue remains a critical test of diplomatic engagement between Canberra and Washington.
