Trump stands firm on tariffs as Australia’s hopes for exemption dwindle

Department of Research, Studies and International News 11-03-2025

Australia’s bid to escape the United States’ sweeping tariffs on steel and aluminum appears to be losing ground as former President Donald Trump reaffirms his commitment to imposing comprehensive trade restrictions. Despite Australia’s vigorous lobbying efforts, the prospect of an exemption seems increasingly unlikely, as Trump insists the tariffs will bring immense financial gains to the U.S.

Speaking to reporters aboard Air Force One, Trump reinforced his belief that these tariffs would be a transformative policy for the U.S. economy. “We’re going to take in hundreds of billions of dollars in tariffs, and we’re going to become so rich, you’re not going to know where to spend all that money,” he stated, underscoring his view that these measures would recover funds the U.S. has lost over decades of international trade.

Trump’s administration has consistently framed the tariffs as a national security issue, arguing that they are essential to protecting American industries from foreign competitors that benefit from government subsidies. Commerce Secretary Howard Lutnick and White House National Economic Council Director Kevin Hassett have both confirmed that the tariffs will take effect as planned on March 12, with no exceptions.

Australia’s Struggle for Exemption

Australia has been pushing hard to be exempt from the tariffs, highlighting its strong alliance with the U.S. and its trade deficit with Washington. Australian officials have pointed out that the country does not pose a competitive threat to American steel and aluminum industries. However, despite initial indications from Trump that Australia’s case would receive “great consideration,” the White House’s stance has become more rigid, making a last-minute exemption increasingly improbable.

This marks a stark contrast to Trump’s first term when former Australian Prime Minister Malcolm Turnbull successfully secured a temporary exemption in 2018. However, Turnbull’s recent public criticisms of Trump may have weakened Australia’s position this time around.

Turnbull’s Criticism and Trump’s Backlash

Turnbull, who has become an outspoken critic of Trump’s leadership, recently warned that Trump’s unpredictable approach to global politics could push other nations closer to China. In an interview with Bloomberg, he suggested that Chinese President Xi Jinping’s stability and consistency could make China a more attractive international partner compared to Trump’s erratic behavior.

“President Xi will aim to be the exact opposite of Trump: where Trump is chaotic, he will be consistent. Where Trump is rude and abusive, he’ll be respectful. Where Trump is erratic, he will be predictable,” Turnbull said. He further suggested that countries choosing between China and Trump’s America might find China the more reliable partner.

Trump swiftly responded via his social media platform, Truth Social, calling Turnbull a “weak and ineffective leader” who failed to recognize the threats posed by China. This latest clash has fueled speculation that Trump may be even less inclined to grant Australia a tariff exemption as a result of Turnbull’s remarks.

Turnbull, unfazed by Trump’s comments, stood by his criticism, arguing that blindly supporting Trump would only encourage more aggressive behavior. “The reality is, if you suck up to bullies, whether in global affairs or in the playground, you just get more bullying,” he stated.

U.S. Officials Reinforce Hardline Stance

Even before Turnbull’s comments, senior U.S. officials had given little indication that Australia would receive special treatment. Hassett reiterated that Trump sees steel and aluminum production as a vital national security issue and does not favor exemptions. “If I walk in and offer an exemption, then I’ll probably get kicked out of the office,” he remarked, signaling that the administration’s position is unlikely to change.

Peter Navarro, a key trade advisor to Trump, further criticized Australia’s trade practices, accusing the country of unfairly subsidizing its aluminum industry. Writing in USA Today, Navarro claimed that Australia was among several nations, including China and Russia, exploiting U.S. markets. “The era of unchecked imports undermining American industry is over,” he declared. “The United States will no longer be a dumping ground for heavily subsidized and unfairly traded aluminum.”

Australia’s Response

In light of the hardening U.S. stance, Australian officials have been working behind the scenes to mitigate the impact of the tariffs. Prime Minister Anthony Albanese has been engaging with major Australian corporations such as Rio Tinto and BlueScope in an effort to secure a favorable outcome. Meanwhile, Treasurer Jim Chalmers visited Washington in February to argue for a carve-out, stressing that Australia’s case is different from other countries facing the tariffs.

Chalmers emphasized that Australia does not engage in the kinds of trade practices the U.S. has targeted, reinforcing the idea that the tariffs should be applied selectively. “Australia has a different case to make than other countries,” he insisted.

With Trump doubling down on his tariff policy and dismissing the notion of exemptions, Australia’s chances of avoiding the economic repercussions of the trade restrictions appear slim. The rift between Trump and Turnbull has further complicated the situation, reducing the likelihood of a diplomatic breakthrough.

As the March 12 deadline approaches, Australia must prepare for the economic impact of these tariffs while continuing its diplomatic efforts to seek alternative solutions. Whether these measures will ultimately serve Trump’s broader economic goals or strain international relations remains to be seen.