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Australia denied exemption from Trump tariffs

<div class="theconversation-article-body"> <p>Australia has failed to win an exemption from Donald Trump’s 25% tariffs on aluminium and steel, but the government has vowed to fight on for a carve out.</p> <p>The White House spokeswoman, Karoline Leavitt, told Australian media in Washington “there will be no exemptions” from the tariffs, which come into effect imminently. Pressed on why, she said “America First steel”.</p> <p>She said, “If they want to be exempted, they should consider moving steel manufacturing here”.</p> <p>Deputy Prime Minister Richard Marles said the government would continue to lobby for an exemption. He pointed out it had taken the Coalition government many months to win a carve out from tariffs under the first Trump administration.</p> <p>“Tariffs don’t make any sense, it’s an act of kind of economic self harm. We’ll be able to find other markets for our steel and our aluminium and we have been diversifying those markets. But we’re obviously really disappointed with this.</p> <p>"I would say, though, we’ll keep advocating to the United States on this issue. Last time around it was nine months before we got an exemption in relation to steel and aluminium out of the Trump administration in its first term. So, we’ll keep pressing the case, we’ll keep diversifying our own trade. But look, there’s no hiding this, we’re really disappointed with this decision.”</p> <p>Opposition deputy leader Sussan Ley said the government “just hasn’t done enough”.</p> <p>“All of the other leaders of the Quad and AUKUS, Japan, India, the UK, travelled to the US, and they had face-to-face meetings, and they did what they needed to do. They advocated fiercely in their country’s interests, but this prime minister has been nowhere to be seen.”</p> <p>But given no exemptions are being provided, a personal trip by the Albanese would likely have had little effect. The PM made the case for an exemption to the president in a call some weeks ago. In that conversation Trump indicated he would consider Australia’s case, but the government quickly became pessimistic about the administration giving it a special deal.</p> <p>BlueScope, while expressing disappointment, saw one silver lining. “BlueScope produces more than 3 million tonnes of steel per annum at its NorthStar BlueScope plant in Delta, Ohio. As the US tariffs come into effect the company expects to see the positive impact from an improvement in steel prices.”</p> <p>Former prime minister Malcolm Turnbull this week predicted Trump would shy away from exemptions this time around. While some observers said Turnbull’s broad attack on Trump, whom he called a bully, could work against Australia’s lobbying, it almost certainly was irrelevant, given all representations were rejected.</p> <p>The Australian concern is less the direct impact of the tariffs – our exports of steel and aluminium to the US are limited – but the fallout from an international trade war that could be sparked by Trump’s policies.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/251623/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/michelle-grattan-20316">Michelle Grattan</a>, Professorial Fellow, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a></em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/australia-like-everyone-else-fails-to-win-exemption-from-trumps-tariffs-on-aluminium-and-steel-251623">original article</a>.</em></p> <p><em>Image: Samuel Corum/CNP/Shutterstock Editorial</em></p> </div>

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Whether we carve out an exemption or not, Trump’s latest tariffs will still hit Australia

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/scott-french-2254956">Scott French</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a></em></p> <p>US President Donald Trump and Prime Minister Anthony Albanese have <a href="https://theconversation.com/trump-agrees-to-consider-australian-exemption-from-tariffs-describing-albanese-as-very-fine-man-248886">stated</a> an exemption for Australia from Trump’s executive order placing 25% tariffs on all steel and aluminium imported into the US is “under consideration”. But prospects remain uncertain.</p> <p>Albanese would do well to secure an exemption using <a href="https://www.smh.com.au/politics/federal/exemptions-are-under-consideration-albanese-reports-warm-chat-with-trump-over-tariffs-20250211-p5lb4r.html">similar arguments</a> as then-Prime Minister Malcolm Turnbull did in 2018.</p> <p>If Australia cannot obtain a carve-out from the tariffs, the main group affected will be the Australian producers of steel and aluminium. But the size of the hit they will take is difficult to predict.</p> <p>Regardless of whether Australia gets an exemption, the world economy – and Australians – will be affected by Trump’s latest round of tariffs.</p> <h2>Producers will be hit</h2> <p>If ultimately imposed by the US, these tariffs will make steel and aluminium produced in Australia more expensive for US manufacturers relative to domestically produced alternatives. This will certainly result in reduced demand for the Australian products.</p> <p>However, three factors will help limit the effects:</p> <p><strong>1. The price of metals produced in the US will rise</strong></p> <p>It will take time to ramp up US production to fill the gap of reduced imports, and the extra production will likely come from <a href="https://theconversation.com/what-are-tariffs-243356">less efficient</a> domestic producers. This means that US manufacturers will continue to buy imported metals, despite the higher prices.</p> <p><strong>2. The US is not a huge market for Australian steel and aluminium</strong></p> <p>Australia produced A$113 billion of primary and fabricated metal in the 2022-23 financial year, according to the <a href="https://www.abs.gov.au/statistics/industry/industry-overview/australian-industry/latest-release">ABS</a>.</p> <p>By comparison, less than $1 billion of steel and aluminium was exported to the US in 2023, according to data <a href="https://comtradeplus.un.org/">from UN Comtrade</a>, consisting of about $500 million of aluminium and less then $400 million of steel. Exports to the US account for about 10% of Australia’s total exports of these metals.</p> <p><strong>3. Major markets</strong></p> <p>If major markets such as China and the European Union enact retaliatory tariffs on US metals, this could make Australian metals more competitive in these markets.</p> <h2>Some stand to benefit</h2> <p>While workers in Australian steel and aluminium plants will be watching the news with trepidation, some of Australia’s biggest manufacturing companies may be less concerned.</p> <p>For example, BlueScope Steel has significant US steel operations, and saw its <a href="https://www.abc.net.au/news/2025-02-10/asx-markets-business-news-live-updates-feb-10/104916360">share price increase</a> on news of the tariffs.</p> <p>US-based Alcoa, which owns <a href="https://www.theaustralian.com.au/business/mining-energy/trump-tariff-threat-puts-aussie-aluminium-smelters-on-edge/news-story/1bba5321af89fd817a55a4984d98d273">alumina refineries</a> in Western Australia and an aluminium smelter in Victoria, will also expect to see its US operations benefit.</p> <p>And Rio Tinto will be most concerned about its substantial Canadian operations. Its Canadian hub is responsible for close to <a href="https://www.riotinto.com/en/can/canada-operations/saguenay">half of its global aluminium production</a>.</p> <h2>Demand for iron ore could fall</h2> <p>The US tariffs will also have wider ranging effects on the Australian economy, regardless of whether Australia’s products are directly targeted.</p> <p>While aluminium is Australia’s <a href="https://www.dfat.gov.au/trade/trade-and-investment-data-information-and-publications/trade-statistics/trade-in-goods-and-services/australias-trade-goods-and-services-2023">top manufacturing export</a>, it still makes up only about 1% of total exports, and steel makes up <a href="https://comtradeplus.un.org/">less than half that</a>.</p> <p>Iron ore, by contrast, makes up more than 20% of Australia’s exports, with aluminium ores making up an additional 1.5%.</p> <p>This means the effect of the tariffs on demand for the raw materials to make steel and aluminium may have the largest detrimental effect on the Australian economy.</p> <p>Because the tariffs will make steel and aluminium more expensive to US manufacturers, they will seek to reduce their use of them. This means global demand for the metals, and the ores used to produce them, will decline.</p> <p>Investors appear to be betting on this, with shares of Australian miners like <a href="https://www.asx.com.au/markets/company/RIO">Rio Tinto</a> and <a href="https://www.asx.com.au/markets/company/bhp">BHP</a> falling since Trump announced the tariffs.</p> <h2>Imported goods will become more expensive</h2> <p>Many of the things Australians buy are likely to get more expensive.</p> <p>All US products that use steel and aluminium at any stage of the production process will also become more expensive. Tariffs will raise the cost of steel and aluminium for US manufacturers, <a href="https://theconversation.com/what-are-tariffs-243356">both directly and by reducing overall productivity</a> in the US.</p> <p>About <a href="https://comtradeplus.un.org/">11% of Australia’s imports</a> come from the US. And about half of this consists of machinery, vehicles, aircraft, and medical instruments, which typically contain steel and aluminium. Further, these goods are used by manufacturers around the world to produce and transport many of the other things Australians buy.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/249493/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/scott-french-2254956"><em>Scott French</em></a><em>, Senior Lecturer in Economics, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a></em></p> <p><em>Image credits: Samuel Corum/CNP/Shutterstock Editorial </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/whether-we-carve-out-an-exemption-or-not-trumps-latest-tariffs-will-still-hit-australia-249493">original article</a>.</em></p> </div>

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Leaked list of 41 Aussie vineyards owned by Chinese firms

<p>Aussie wine lovers are being urged to steer clear of 41 Australian wineries after a viral list revealed that they were owned by Chinese companies.</p> <p>The list was shared on social media following Beijing's escalating feud with Australia, which has led to restrictions to be imposed on Australian industries.</p> <p>This includes the wine industry, which has been impacted with new import taxes of up to a shocking 212 per cent.</p> <p>Other industries impacted include timber, lamb, lobster and barley, with fears their tactics could spread to other sectors.</p> <p>The list was shared on the<span> </span><a rel="noopener" href="https://www.facebook.com/vinoeamigos" target="_blank">Vino e Amigos</a><span> </span>Facebook page and revealed that most of the Chinese-owned vineyards are in Victoria, South Australia, Tasmania, WA and NSW.</p> <p>The Facebook page has since been deleted.</p> <p>Some pointed out that the percentage of each winery owned by Chinese companies was not on the list and that wineries owned by Australian-Chinese people weren't to blame.</p> <p>Another pointed out some on the list were “run by Aussie workers though, and Aussie workers are still getting paid”, indicating a boycott may cause more harm than good.</p> <p>“No wonder some Aussies always say the govt is selling the country to China,” one person posted, while another added: “Aussie winemakers have been teaching the Chinese how to make wine for years. For what, to screw us over?”</p> <p>The unprecedented tariffs on Australian wine would destroy the sector which was already struggling due to bushfires.</p> <p>“The wine production industry generated revenue of $7 billion in 2019-20. Of that amount,$2.9 billion was generated from exports,” IBISWorld Senior Industry Analyst Matthew Reeves said.</p> <p>“China is the dominant market for Australian wines, accounting for 36.7% of export revenue last year.”</p> <p>“Australia’s premium wine exports will have an easier time finding new buyers outside of China, supporting bigger players in the industry. On the other hand, exports of cheaper wines will likely face significant difficulty in the coming months.”</p>

Food & Wine

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"Vile anger": Cafe owner cops abuse over Dan Andrews coffee tariff

<p>A café owner from Melbourne’s South-east announced he would be removing his “tongue in cheek” sign that said Daniel Andrews’ supporters would be charged extra for coffees after he received a wave of abuse and threats.</p> <p>Acrobar co-owner Franz Madlener told <em>Today </em>that police visited the business on Wednesday night and “strongly suggested” he remove his sign as it was inciting anger.</p> <p>Mr Madlener added he felt forced to hire security guards after people threatened to throw rocks at the business because of the sign.</p> <p>The café owner had the sign on the counter for three weeks before it received criticism after going viral on social media on Wednesday.</p> <p><img style="width: 500px; height: 281.25px;" src="https://oversixtydev.blob.core.windows.net/media/7838371/coffee-melbs-1.jpg" alt="" data-udi="umb://media/25c176b8226c47d2a143a19cc70cdc6a" /></p> <p>“Initially it was fine, we had about 30 people see the humour in it and put $1 into the tip jar,” the café owner told hosts Karl Stefanovic and Allison Langdon.</p> <p>“But in the last 24 hours, I guess since this sign’s gone viral, the level of abuse and vile anger and personal attacks on the business, me and the staff yesterday, was completely over the top.”</p> <p>Mr Madlener said they received a call that threatened to have their windows smashed with rocks and spray paint, just as it had been done to Premier’s office.</p> <p>He said the police’s grave warning encouraged him to remove the “light-hearted” sign.</p> <p>“If you’ve had the police ask you to take the sign away, of course,” Mr Madlener said.</p> <p><img style="width: 500px; height: 281.25px;" src="https://oversixtydev.blob.core.windows.net/media/7838372/coffee-melbs-2.jpg" alt="" data-udi="umb://media/671ba6c54dcc47e994e04cc344720d98" /></p> <p>“My main concern is for our staff, to keep the staff safe. We don’t want people coming in and using that to create more anger against the staff.</p> <p>“Up until now we’ve been fighting lockdown and now we’re fighting these absolute extremists out there full of absolute hate towards the business.”</p> <p>The café owner says the sign was not meant to be political but instead was supposed to be a “light-hearted” protest to counter comments about how they should feel grateful and lucky about the government lifting strict COVID-19 restrictions.</p>

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