Trade Cases

Turnbull Says Australia Exempt from Trump's Tariff

Written by Tim Triplett


Even though the Commerce Department has until next week to issue procedures for handling exclusion requests, Australian Prime Minister Malcolm Turnbull has announced via Twitter that his nation will be exempt from the tariffs on steel and aluminum imposed by the Trump administration March 8.

The United States’ closest trading partners, Canada and Mexico, were exempted from the 25 percent tariff on steel exports and the 10 percent tariff on aluminum exports that other countries face. But other U.S. allies are expected to line up to plead their case for relief. The Trump administration has said it will consider such appeals on a country-by-country basis. Australia appear to be first in line.

As President Trump tweeted on Friday: “[Turnbull] is very committed to having a very fair and reciprocal military and trade relationship. Working very quickly on a security agreement so we don’t have to impose steel and aluminum tariffs on our ally, the great nation of Australia.”

Turnbull responded on Monday: “What we have achieved is a commitment from the president that the tariffs on steel and aluminum will not apply to exports from Australia. This is very important for the thousands of people who rely on these industries for work.”

An exemption for Australia is particularly important to BlueScope Steel, which ships feedstock to its sister company Steelscape in the United States.

The Commerce Department has 10 days from the March 8 announcement of the tariffs to issue procedures for countries to follow in requesting exclusion from the tariffs. Presumably not via Twitter.

Latest in Trade Cases

Price: How did ‘Buy Clean’ get switched to ‘Buy Dirty’?

The Inflation Reduction Act (IRA) appropriated more than $4 billion to the General Services Administration (GSA) and Federal Highways Administration (FHWA) for “Buy Clean” programs. The statute makes clear that GSA and FHWA purchases under these programs are limited to those with “substantially lower” emissions. There is no ambiguity in that requirement. The Environmental Protection Agency (EPA) has defined “substantially lower” to mean products with the lowest 20% of embodied emissions when compared to similar materials.

Op-Ed: Strong trade enforcement builds prosperity and security

Tariffs on unfairly traded steel and other products help to stabilize America’s most important industries, safeguard tens of thousands of jobs, and protect national security. My union, the United Steelworkers (USW), never seeks these remedies lightly. And presidents, Republican and Democrat alike, implement them only after diligent investigations documenting the harm that foreign adversaries intentionally inflict upon our country with dumping, overproduction and other kinds of trade cheating. I don’t think Lewis Leibowitz considered these points while criticizing tariffs in his excessively pro-free-trade column, “Where is the voice of the consumer?” on May 5.