Australia’s trade minister has argued that the country’s steel and aluminium exports to the US help create “good paying American jobs” and are vital to shared defence interests, as Canberra seeks an exemption from President Donald Trump’s proposed tariffs.

Trump announced on Sunday that he would impose new 25% tariffs on all steel and aluminium imports, adding to existing duties in another escalation of his trade policies.

Trade Minister Don Farrell said on Monday that Australia, a key US security ally in the Indo-Pacific, was advocating for “free and fair trade, including access into the US market for Australian steel and aluminium” in discussions with the Trump administration.

“Australian steel and aluminium is creating thousands of good paying American jobs and is key for our shared defence interests,” he said in a statement.

While Farrell has yet to meet his US counterpart, who is not yet confirmed in the role, Australian officials have been pressing Washington for months, hoping to secure a tariff exemption similar to the one granted under Trump’s previous administration in 2018.

Prime Minister Anthony Albanese told parliament on Monday that he was scheduled to speak with Trump and would raise the issue.

“We will continue to make the case to the United States for Australia to be given an exemption to any steel and aluminium tariffs,” he said.

Defence Minister Richard Marles also met with his US counterpart, Pete Hegseth, in Washington on Friday. The meeting coincided with Australia’s first $500 million payment towards boosting US submarine production under the AUKUS defence pact, which involves Australia purchasing several US nuclear-powered submarines and developing its own fleet.

Australian processed steel has been used by the US’s largest military shipbuilder as AUKUS partners—Australia, Britain, and the US—work to integrate defence supply chains, the Australian government said last year.

Shares in Australian-listed BlueScope Steel rose nearly 2% on expectations that its US business would benefit from the tariffs. The company operates the North Star Mill in Ohio and employs around 4,000 people in the US.

Faridah Abdulkadiri

Follow us on: