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Australia Pushes for U.S. Tariff Exemption, Citing Jobs and Defense Ties

Australia’s Trade Minister Don Farrell has urged the Trump administration to exempt Australian steel and aluminum exports from newly announced 25% tariffs, arguing that they support American jobs and strengthen shared defense interests.

President Donald Trump announced Sunday that the U.S. would impose new 25% tariffs on all steel and aluminum imports, escalating his protectionist trade policies.

Speaking Monday, Farrell emphasized Australia’s role as a key U.S. security ally in the Indo-Pacific, pushing for continued “free and fair trade” with Washington.

“Australian steel and aluminum is creating thousands of good-paying American jobs and is key for our shared defense interests,” Farrell said in a statement.

While Farrell has yet to meet his U.S. counterpart, Australian officials have been lobbying Washington for months, seeking an exemption similar to the one granted in 2018 under Trump’s previous administration.

Prime Minister Anthony Albanese confirmed Monday that he is scheduled to speak with Trump and intends to formally raise the issue.

“We will continue to make the case for Australia to be given an exemption to any steel and aluminum tariffs,” Albanese told parliament.

The tariff discussions come amid deepening defense cooperation between the two nations.

On Friday, Australia’s Defense Minister Richard Marles met with U.S. Defense Secretary Pete Hegseth in Washington, coinciding with Australia’s first $500 million payment toward boosting U.S. submarine production under the AUKUS defense pact.

Under the agreement, Australia will purchase U.S. nuclear-powered submarines and eventually develop its own fleet, strengthening defense integration among AUKUS partners—the U.S., Britain, and Australia.

Australian steel is already used by the U.S.’s largest military shipbuilder, and BlueScope Steel, which operates North Star Mill in Ohio and employs 4,000 people in the U.S., is expected to benefit from the tariffs.

Shares in BlueScope Steel rose nearly 2% on Monday as investors anticipated a boost to its U.S. operations.

As diplomatic negotiations continue, Australia is positioning itself as an indispensable trade and defense partner, hoping to secure a crucial tariff exemption.

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