The Albanese government has just nine days remaining to secure an exemption from the looming 25 per cent steel and aluminium tariffs imposed by US President Donald Trump.
Despite representations in Washington DC by Treasurer Jim Chalmers, Ambassador Kevin Rudd and Deputy Prime Minister Richard Marles, the government faces an uphill battle.
President Trump’s top trade adviser Peter Navarro recently raised the stakes and accused Australia of unfair trade practices in an op-ed shared by the White House.
He described Australia’s heavily subsidised smelters as operating “below cost”, giving them an unfair dumping advantage.
He also pointed to Australia’s close ties with China, claiming they further distort global aluminium markets.
The impending tariffs threaten to impact up to 120,000 jobs in Australia’s metals industry, and the government has continued to face scrutiny over its handling of the issue.
Shadow finance minister Jane Hume told Sky News there was bipartisan support for the tariff carve-out but claimed the government had failed to use all its diplomatic tools.
“Anthony Albanese is the only member of the Quad … one of our most important diplomatic relationships with the US, that hasn’t met directly with Donald Trump,” Ms Hume said.
“I think we’d like to see all stops pulled out, every diplomatic tie used in order to make sure that Australia gains that exemption.”
Mr Albanese was able to hold a phone call with President Trump, in which the US leader said an exemption was “under consideration”.
“Look, inevitably those person-to-person, one-to-one, face-to-face meetings do build deeper ties with our allies,” said the shadow finance minister.
“I think that there would have been some advantage in that. Perhaps that boat has sailed.”
It comes after Treasurer Jim Chalmers met with Treasury Secretary Scott Bessent last week before admitting there was a “big hill to climb” until any exemption was given.
“We’re under no illusions, it will be hard… This is a big hill to climb, it will be harder this time than last time,” Mr Chalmers said.
The previous Coalition government was able to negotiate tariff exemptions during the last Trump administration, but the carve-out took several months.
The US tariffs, which are due to come into effect on March 12th, remain a critical challenge for the Albanese government.
Australian Treasury Secretary Steven Kennedy expressed deep concerns about the impacts of tariffs during senate estimate hearings last week.
“It is important that, should trade tensions escalate around the world,” he told the Economics Legislation Committee.
“Australia’s response is responsible, rigorous and effective, even if tariffs are applied to our exports.”
Mr Kennedy also warned against Australia imposing retaliatory tariffs on the United States, saying it would only worsen economic conditions.
“Ultimately, tariffs can push up a broader set of prices across the economy and reduce economic growth,” he said.
Reserve Bank Governor Michele Bullock also conveyed the “negative” impact that the looming tariffs would have on Australia.
“The bottom line is that it’s definitely negative for growth… The impact on inflation is less certain. It does depend,” she said.
As the deadline looms, the Albanese government will continue racing against time to secure a tariff exemption for Australia’s metals industry.
Opposition Leader Peter Dutton has been vocal in his criticism, arguing that the government should have applied more pressure earlier in the process.
“I’m surprised that the Prime Minister didn’t have a full court press knowing that this was coming,” Mr Dutton recently told Sky News.
“Every minister should have been cycling through Washington to meet with Trump administration officials.”
