Australia's aluminium industry is facing uncertainty as the US government imposes tariffs on steel and aluminium imports. The White House claims Australia breached a verbal agreement to limit exports, while Australian officials maintain their stance.
Steel and aluminium have long been at the centre of Australia’s industrial base. Manufacturing plants like this one in Melbourne’s north, have been turning raw metals into sturdy products which have built Australia for decades. Aluminium is one of Australia's largest industries, and it's Australia's largest manufactured export.
Anything that happens like the imposition of, you know, high tariffs into one of the biggest markets for our smelters, you know, could have a flow on effect which, which would damage the Australian economy. That apprehension is about Donald Trump’s plans to impose 25 per cent tariffs on steel and aluminium imports into the US and its effect on the global economy. Nothing’s set in stone, this is the new era of the Trump administration, and it can change on a dime. From the perspective of the US aluminium industry, it's clearly a significant benefit for them. However, from the perspective of American consumers, final consumers, but also final manufacturers, they will end up paying a higher price, and therefore it's negative for their margins. The US used to be one of the biggest players in aluminium - not anymore. China is now the world’s largest supplier, who has already been slapped with 10 percent tariffs on all goods imported into the states. China's direct exports of primary aluminium to the United States are virtually nil. What China does have though, is the export of more semi-fabricated aluminium products which go to the United States. The nature of this bill, as it's currently proposed, will mean that they are also hit by additional tariffs. All the countries that flood us now with aluminium and/or steel are being tariffed. They are being tariffed to defend the American people. It was President Trump’s senior advisor on trade and manufacturing, Peter Navarro, who singled out Australia and aluminium as a problem. Australia is just killing our aluminium market and President Trump says no. No, we’re not doing that anymore. I think it's ludicrous for some members of the Trump administration to suggest that Australia is destroying the aluminium market in the US when we're the supplier of raw material. Aluminium raw material in the US market would make up only 1 or 2 percent of the total consumption of US aluminium. The White House claims, Scott Morrison's Coalition government, reneged on a verbal agreement with President Trump to limit Australian aluminium exports. The President’s formal tariff proclamation stated, “Australia has disregarded its verbal commitment to voluntarily restrain its aluminium exports to a reasonable level.” Trade Minister, Don Farrell declined to comment further. Last week he said it was a matter for the previous government. Former prime minister Scott Morrison, and former trade minister Simon Brimingham also both declined an interview with 7.30 about the White House claims. In terms of the world’s aluminium producers, Australia is the 7th largest. It’s four smelters produce 1.4 million mega tonnes a year. Most of it heads to Asia, the biggest markets being Japan and South Korea and about 10 percent heads to the US, where Australian aluminium exports peaked in 2021 and 2022. In the last 12 months, Australia has been the 8th largest exporter of aluminium into the US, making up just 2.5 percent of the market. The single biggest, and in fact, the dominant exporter of aluminium to the United States is Canada. Last year, Canada exported roughly 70 percent of the aluminium that was imported into the United States. Our primary aluminium, we get from the local smelters, both at Tomago in Newcastle and the Boyne smelter in Queensland. If certain countries, particularly China, are shut out of the US market because of the 25 percent tariffs, then other countries in the world will be intentionally open to receiving those goods. Dumping of aluminium is when a country subsidizes the manufacture of aluminium, which enables its manufacturers in their country to sell overseas at a price that's below the world price and below the cost of manufacture. Capral director Tony Dragicevich, believes Australia’s aluminium manufacturing industry could be one of them, and is at risk without anti-dumping measures put in place
ALUMINIUM AUSTRALIA TARIFFS TRADE US CHINA GLOBAL ECONOMY
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US Aluminium Tariffs Cast Uncertainty Over Australia's $18 Billion IndustryProposed tariffs on aluminium imports by US President Donald Trump have triggered concern in Australia's $18 billion aluminium industry. While Prime Minister Anthony Albanese seeks an exemption, experts warn of potential disruptions to global trade flows and the risk of cheaper aluminium flooding the Australian market. The industry, a major contributor to Australian jobs and exports, faces uncertainty as it awaits the impact of Trump's policy.
Read more »
Trump's Aluminium Tariffs Cast Uncertainty Over Australia's $18 Billion IndustryThe proposed 25% tariff on aluminium imports by the US threatens Australia's thriving aluminium industry, which is a major contributor to the Australian economy. The impact of these tariffs is felt throughout the supply chain, prompting concerns about job losses and unfair competition.
Read more »
Australia's Steel Industry Faces Uncertainty as Trump Imposes TariffsThe announcement of Donald Trump's steel tariffs, with no exceptions for any country, has sparked concerns in Australia's largest steel export hub, the Illawarra. Community leaders and workers are apprehensive about the potential impact on the industry, particularly on BlueScope, Australia's leading steel exporter to the United States. While BlueScope has invested heavily in its American operations and seen significant profits there, the tariffs could still have a ripple effect on the Australian steel industry.
Read more »
Trump announces 25 per cent steel and aluminium import tariff on all steel and aluminium importsAustralian iron and steel exports to the US were worth $378,803,827 in 2023.
Read more »
Australia Faces Devastating Heatwave: Record Temperatures Scorch Western Australia, Queensland to FollowRecord-breaking temperatures are plaguing Western Australia, while Queensland prepares for a dangerous heatwave. Perth and Geraldton experience scorching highs, with the former hitting its hottest day in a decade. The BOM warns residents to take precautions against the extreme heat, which can be especially dangerous for vulnerable groups.
Read more »
US Tariffs on Steel and Aluminium Spark Uncertainty for Australian IndustryAs the US imposes new tariffs on steel and aluminium imports, including a potential 25% levy on Australian exports, the industry grapples with the future. While Australia might be considered for an exemption, its aluminium exports are cited as a reason for the tariffs. The situation raises questions about the validity of claims that Australian aluminium is 'killing' the US market, given its relatively small share of US imports.
Read more »