Tariff exemption a ‘band-aid’ as Trump upends | Australian Markets

Australian industry is not going to be saved within the long-term by a tariff exemption because the US president’s measures remodel worldwide trade, a union chief says.

Donald Trump’s 25 per cent tariffs on all metal and aluminium imports will come into impact on March 12, leaving Australia one month to persuade US counterparts to grant the nation’s exporters an exemption.

Whereas the South Coast Labour Council desires Australia to do all it might to keep away from the tariffs, secretary Arthur Rorris says the federal government must essentially shift its strategy to trade.

“Trump is essentially throwing out the international rule book on trade,” he informed AAP.

“Kowtowing to President Trump is what we would consider a short-term fix, a band-aid.

“We do not need a band-aid, we need to face the fact the world has modified.”

Mr Rorris’s union includes workers from Australia’s largest manufacturer and supplier of flat steel – BlueScope’s Port Kembla Steelworks.

For many, the current situation echoes a 2015 steel crisis that almost led to the manufacturer’s closure, risking thousands of jobs.

“I am not suggesting we’re about to lose our metal industry now,” Mr Rorris said.

But if nothing changes and companies consider moving to the US due to certainty of demand and shareholder interests, the union leader said “that’s not one thing we are able to afford to disregard”.

“The metal industry is a large half of the regional economic system, but additionally a foundational industry for our national economic system,” he said.

The dumping of cheap Chinese-produced steel on the domestic market, also a concern during the 2015 crisis, would be one of the biggest consequences of the tariffs as it could undermine Australia’s ability to sell its own product at realistic market prices.

Mr Rorris called on the federal government to introduce tougher anti-dumping provisions and ensure domestically produced steel was used within Australia.

“The Australian taxpayer is the most important market for metal – not any non-public company or trading deal with some other nation,” Mr Rorris stated.

“If you happen to take a look at our wants as a nation there’s more than enough there to keep our steelworks going.”

Benchmark prices and other measures can also be introduced to prevent price gouging.

Though these proposals have historically been unpopular among Australian governments – which generally prefer options that promote free trade – the US has taken a similar approach for years.

“It is time our authorities additionally acts in our national pursuits and places Australian staff first,” Mr Rorris said.

After a phone call with Prime Minister Anthony Albanese, Mr Trump said he would give Australia’s case for an exemption “great consideration”, including it was one of the few nations with which the US had a trade surplus.