The United States’ 50 per cent tariff on foreign steel and aluminium goods are now in effect following President Donald Trump’s recent announcement to double import taxes on the two metals.
On May 31, the US Government made changes to the steel and aluminium tariffs that have been in place since mid-march, increasing them from 25 per cent to 50 per cent as of June 4.
“We are going to be imposing a 25 per cent increase,” Trump said.
“We’re going to bring it … to 50 percent the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States.”
In light of that increase, Federal Trade and Tourism Minister Don Farrell said Australia’s position on the US tariffs, including the baseline 10 percent tariff on Australian imports that came into effect on April 5, has been “consistent and clear”.
“These tariffs are unjustified and not the act of a friend,” Farrell 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.”
Given that aluminium is Australia’s top manufacturing export, Australian Aluminium Council chief executive officer Marghanita Johnson said the body was working to get clarity around the tariff’s impact on the national aluminium trade.
“A key concern is the potential for the distortion of international trade flows, which disrupt efficient market operations and increase the risk of trade diversion,” Johnson said.
“Amid global uncertainty in the sector, the industry also reiterates its call for the inclusion of bauxite, alumina and aluminium to Australia’s Critical Minerals list.
“This alignment with key trading partners would send a clear signal that Australia is committed to safeguarding its vital role in the global supply chain.”
