President Donald Trump says he will increase tariffs on United States steel imports from 25 per cent to 50 per cent starting Wednesday, to boost local production and reduce the country’s dependence on China.
The move could hinder Australia’s exports of the metal by making it more expensive for US companies to buy foreign steel.
This change might also increase the local prices of steel, an essential component in construction, automobiles, and other products.
What is Trump saying?
In a significant policy decision early in his second term in February, Trump implemented a uniform 25 percent tariff on steel and aluminum.
Australia has continued its push for an exemption to the penalties, with its goods currently subject to a 10 per cent baseline tariff.
“We’re going to bring it from 25 per cent to 50 per cent the tariffs on steel into the United States of America, which will further secure the steel industry in the United States,” Trump said at a rally on Friday, announcing the change.
He later commented on Truth Social, “Our steel and aluminum industries are reviving like never before.”
Australian cabinet minister responds
Minister for Trade and Tourism Don Farrell responded that Australia’s position on the tariffs has been “consistent and clear”.
“These tariffs are unjustified and not the act of a friend,” he said.
“They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade.
“We will continue to engage and advocate strongly for the removal of the tariffs.”
In 2024, Australia exported around US$333 million ($519 million) worth of steel and iron to the US, according to an analysis of financial data by Trading Economics.
