Australia’s commerce minister has denied the Trump administration’s claims native aluminium producers are “killing” America’s market, rejecting US allegations on the centre of the tariff standoff that Canberra had breached a Morrison-era handshake deal to restrict exports.
Don Farrell says he “can’t predict” when the US president, Donald Trump, may make a decision on whether or not to grant Australia an exemption to 25% metal and aluminium tariffs, however has argued bluntly that such commerce obstacles could be dangerous.
“The argument that will be presented to the United States … will be that it doesn’t make any sense at all to be imposing a tariff on a country where you have a trade deficit,” he advised reporters in Parliament Home on Thursday, in his first main feedback on the brewing commerce storm.
A voluntary dedication, made to Trump in 2019 by the then Morrison authorities, to unofficially restrict aluminium exports to the US is on the coronary heart of the Albanese authorities’s efforts to keep away from tariffs. The president’s proclamation for the aluminium tariffs accused Australia of reneging on a verbal settlement on the product; Trump’s commerce adviser, Peter Navarro, claimed Australia is “crushing” and “killing” America’s manufacturing sector.
Sources advised Guardian Australia that the settlement, described as a voluntary enterprise, was struck after a dinner between Morrison and Trump on the G20 in Japan in 2019. It’s understood that Trump advisers, together with Navarro, had been eager to take away the exemptions in 2019 however an enterprise by the Morrison authorities noticed Australia voluntarily restrict aluminium exports as a substitute.
They mentioned it was unclear whether or not 2019’s voluntary enterprise was upheld below the Biden or Albanese governments, after the Trump and Morrison governments misplaced subsequent elections in 2020 and 2022. It’s understood the Albanese authorities has discovered no such written or formal file of such an settlement.
Farrell mentioned he was not conscious of such an settlement being made or continued below the Albanese authorities, which got here to workplace in 2022.
“This government, I believe, has complied with all of the arrangements set in place by the American government,” he mentioned.
“I believe we’re complying with all of our obligations in terms of entry of our steel and our aluminium into the United States, and we’ll continue to do so.”
Farrell mentioned that Australia’s exports of metal and aluminium had discovered extra various markets in recent times, after Albanese authorities efforts to diversify export markets.
Whereas Navarro accused Australia of “flooding” markets with aluminium, figures from the US Division of Commerce present Australia was eighth on an inventory of largest exporters to the US.
As of February 2025, 97,421 metric tonnes of aluminium had arrived within the US from Australia; that compares with 3,288,315 metric tons from the highest import vacation spot Canada, then 392,080 from the second-placed United Arab Emirates, and 238,425 from Korea. Bahrain, China, Argentina and India all exported way more aluminium to the US then Australia.
In 2024 Australia exported about $23.8bn price of products to the US and imported $50.6bn.
Authorities sources have downplayed the prospect of any imminent choice on tariff exemptions, even with the tariffs set to come back into power in mid-March.
“I can’t predict what the American government might do in terms of when they’ll make a final decision. But can I say this, we’ll continue to represent Australia’s interests with the United States,” Farrell mentioned.
The shadow house affairs spokesperson, James Paterson, argued Australia was “a very small importer of steel and aluminium to the United States compared to its other trading partners”.
“We’re very clearly not doing harm to the United States’ steel or aluminium industries,” he advised Sky Information Australia.
Paterson claimed Albanese ought to have been “on the first plane over to the United States after the inauguration to have that in-person meeting with President Trump to build that rapport”.
On Tuesday Trump labelled Albanese a “very fine man” and mentioned he would give “great consideration” to an exemption after a cellphone name between the 2 leaders.
