‘Slap in the face’: Australian manufacturers slam | Australian Markets

The height physique for Australian producers says the proposed 25 per cent tariff on all US imports of metal and aluminium can be a “slap in the face” for the industry and for the nations’ political and financial ties.

Innes Willox, chief government of the Australian Trade Group, stated President Trump’s proposal meant “nothing could be taken for granted… in a rapidly changing world” and frightened that Australia’s sturdy political relationship was being jeopardised.

“We cannot be sanguine about one of our most important trade and investment links. Pollyannaish hopes that we would fly under the radar have proven to be sadly misplaced,” he stated.

“That this advice has been given the day after our deputy prime minister was in Washington to hand over billions of dollars to secure the AUKUS submarine deal is particularly troubling.”

Mr Willox stated it was a “national priority” to reverse the US tariff resolution.

“It is now up to the Federal Government.. to protect Australian industry and producers from being caught up in a rapidly escalating global trade war,” he stated.

Finance Minister Katy Gallagher stated the Authorities would await additional data however felt Australia was in a “strong position” given months of “good engagement” with the new administration.

She stated if President Trump’s tariffs did hit Australia, that will “clearly have some impact” on native companies, which she and Treasurer Jim Chalmers can be “watching closely”.

“I’d say we are engaging very proactively with the Trump administration. We believe there’s some very strong arguments around the mutually beneficial trade relationship between the two countries, and we’ll continue to do that,” she stated.

Shadow Minister for Commerce and Tourism Kevin Hogan stated the aluminium and metal industry exports over $550 million and stated it was regarding that Australia was blindsided.

“Richard Marles was just in the US. He needs to answer: was he aware about this and did he negotiate that Australia should be excluded from any tariffs and if not why not?”

Metal and aluminium tariffs have been utilized beneath the earlier Trump administration, though Australia was exempted following negotiations with then-ambassador Joe Hockey.

The AIG was hopeful that that negotiations on tariffs beneath the new Trump administration have been progressing effectively however it seems these talks have didn’t have an affect.

“We worked with DFAT and trade negotiators during the previous Trump administration and have been doing the same with the new administration to seek to ensure there are zero tariffs for aluminium, steel and iron produced in Australia,” Mr Willox stated.

“A tariff on Australian goods despite us having a long-standing free trade agreement with the United States and agreements around exemptions for Australian produced goods during the previous Trump administration would be a slap in the face for Australian industry and our mutually beneficial economic and security arrangement.”

Main metal producer Bluescope noticed the writing on the wall during that period and has considerably expanded its operations to turn out to be the fifth largest producer within the nation.

“BlueScope has been investing in the United States for 30 years. Most recently, we have spent $2 billion on acquisitions and brownfields expansion of our operations there. BlueScope is now the fifth largest steel producer in the US, employing 4,000 American workers,” the company informed The Nightly.

“BlueScope abides by all trade rules and agreements. We will continue to work with the Trump administration and the Australian Government, as we await further details.”

The share market expects the tariffs can be helpful to Bluescope, pushing shares within the company up 1.7 per cent in morning trade.