Trump to impose 25% tariff on steel and aluminium; BlueScope rises, South32 tumbles
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More news: Prime Minister Anthony Albanese says he has scheduled a discussion with US President Donald Trump following news that the US will impose 25% tariffs on all steel and aluminium imports.
Albanese told Parliament that his government plans to “stand up for Australia’s national interests” and have a “free and fair trade” by arranging a carve-out from the tariffs.
“This government has a strong record, indeed, of working with other nations to protect and advance Australia's trade interests. We will navigate any differences which are there diplomatically, and we will continue to make the case to the United States for Australia to be given an exemption to any steel and aluminium tariffs.”
Albanese said these issues have already been raised with the US administration and that Australian companies’ significant investment in the US steel industry creates thousands of jobs in both countries. He added that the US has had a trade surplus with Australia since the Truman presidency.
“I have a discussion with President Trump scheduled, and I will certainly keep the House and the Australian people informed after that discussion,” Albanese said.
South32 and Rio Tinto tumble as US tariffs to hit aluminium
More news: Shares in aluminium producers South32 and Rio Tinto lowered in response to impending US tariffs on all aluminium and steel imports today.
South32 (-1.57%) and Rio Tinto (-1.2%) both retreated as fellow aluminium producer Alcoa Corporation edged up 0.1% by 3:01pm AEDT. The materials sector was down 0.8% while the ASX 200 index trimmed 0.5%.
Steel producer BlueScope Steel continued to rise and was up 1.91% while Champion Iron gained 3.84%.
BlueScope Steel shares gain as Trump announces steel tariffs
More news: Australia's largest steelmaker BlueScope Steel was one of the top performers across the ASX 200, after US President Donald Trump vowed to impose 25% tariffs on all steel and aluminium imports later today.
BlueScope shares were up 3% to $22.16 by 11:30am AEDT. Materials lowered 0.1% as the ASX 200 index fell 0.3%.
Melbourne-based BlueScope operates five businesses in North America, including its North Star facility in Delta, Ohio.
However, shares in iron ore miners saw a mixed response on the market. Champion Iron shares rose 2.7%, while Fortescue (0.2%), Rio Tinto (-0.1%) and BHP (-0.4%) were less moved.
The majority of Australia's iron ore exports are used for steelmaking, with China its largest customer.
Opposition ramps up pressure on Rudd, says Australia 'must' avoid Trump tariffs
More news: The Opposition has ramped up the pressure on ambassador to the US Kevin Rudd, saying Australia “must” secure an exemption to tariffs announced by the Trump administration.
On Monday, US President Donald Trump announced imminent 25% tariffs on all aluminium and steel imports in what could be the first salvo in a major global trade war.
The Coalition has regularly questioned whether Rudd’s history of critical comments directed at Trump, made before he took up his current role in Washington, will undermine his ability to work with the new administration.
And in a statement soon after the tariffs were announced, Coalition trade spokesperson Kevin Hogan stressed then US ambassador Joe Hockey — a former Liberal treasurer — had helped Australia avoid tariffs during Trump’s first administration.
“Albanese handpicked Kevin Rudd for this position. Albanese and Rudd have a big job to do here … I hope they are up to it,” Hogan said.
Australian aluminium exports to the US were valued at US$316.92 million ($505.45 million) in 2023, while its exports of iron and steel were valued at US$237.51, according to a United Nations COMTRADE database.
What they said: “We were able to successfully have Australia exempted from these tariffs back then and the current Government must get the same result,” Hogan said
Trump to impose 25% tariff on steel and aluminium
The news: US President Donald Trump has told reporters that he will impose 25% tariffs on all steel and aluminium imports on Monday (US time).
The context: The tariff would include products from Canada and Mexico. Trump said he would announce further import duties later in the week.
“Any steel coming into the United States is going to have a 25% tariff … aluminium too,” he told reporters as he flew from Florida to New Orleans to attend the Super Bowl.
Trump also said he would announce “reciprocal tariffs” on products from countries that have levied duties on US goods “probably Tuesday or Wednesday”.
What they said: “If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump said.
