Australia will not impose reciprocal tariffs on the US, Prime Minister Anthony Albanese said on Wednesday, after President Donald Trump ruled out exemptions or exceptions for all countries on steel and aluminium tariffs.
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Trump said in February he would “give great consideration” to exempting Australia from the tariffs in view of the US annual trade surplus with the country, following a phone call with Albanese.
However, on Tuesday the White House announced that the previously planned 25 per cent tariffs on all imported steel and aluminium products into the US from all countries would take effect on Wednesday.
Albanese said the decision by the Trump administration was “entirely unjustified … and against the spirit of our two nations’ enduring friendship and fundamentally at odds with the benefit of our economic partnership.”
Tariffs and escalating trade tensions are a form of economic self-harm … They are paid by the consumers
But he said imposing reciprocal tariffs on the US would only push up prices for Australian consumers and spur inflation.
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“Tariffs and escalating trade tensions are a form of economic self-harm, and a recipe for slower growth and higher inflation. They are paid by the consumers,” Albanese told reporters.