<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>US President </span><a href="https://www.9news.com.au/donald-trump" rel="" target="" title="Donald Trump"><span>Donald Trump</span></a><span> has </span><a href="https://www.9news.com.au/national/donald-trump-rules-out-tariff-exemption-australian-steel-and-aluminium/2b339ef2-d341-475d-ad11-f62fb6f08dec" rel="" target="" title="slapped 25 per cent tariffs on Australian steel and aluminium exports"><span>slapped 25 per cent tariffs on Australian steel and aluminium exports</span></a><span>, a step slammed as a "form of economic self-harm" by Prime Minister </span><a href="https://www.9news.com.au/anthony-albanese" rel="" target="" title="Anthony Albanese"><span>Anthony Albanese</span></a><span> that flies in the face of the free trade agreement between the nations.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The tariffs cover all imports of those metals from across the globe into the </span><a href="https://www.9news.com.au/usa" rel="" target="" title="United States"><span>United States</span></a><span>, and while </span><a href="https://www.9news.com.au/australia" rel="" target="" title="Australia"><span>Australia</span></a><span> had pushed for an exemption, the White House has announced they will go ahead as originally planned.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>So how will the policy impact Australia and our local economy? This is what you need to know.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/donald-trump-rules-out-tariff-exemption-australian-steel-and-aluminium/2b339ef2-d341-475d-ad11-f62fb6f08dec" rel="" target="" title=""><strong><span>Steel, aluminium tariffs 'completely unjustified' Albanese says</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>What is a tariff?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A tariff is a tax on imported goods.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While Trump has indicated they are paid by the country the tariffs are placed on, they're actually charged to the company that imports the good in question, which generally just leads to higher prices for consumers.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/donald-trump-tariffs-what-they-mean-australia-everything-need-know-explainer/6b4053af-724e-4649-a574-b73498d2fc4a" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>What tariffs is Trump introducing and why is he doing it?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In the first few weeks of his second term in the White House, Trump has already introduced a raft of tariffs, including 25 per cent on goods from Canada and Mexico and 20 per cent on Chinese exports.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The one we're particularly interested in, though, is a 25 per cent tariff on all steel and aluminium imports into the US, which includes those from Australia.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Trump has said this will both raise revenue for his government and boost US manufacturing. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/trump-halts-doubling-of-tariffs-on-canadian-metals-after-ontario-suspends-electricity-price-hikes/a6e670d1-31c3-47bd-8c9a-c26f3d4fdd3c"><strong><span>Trump backflips on tariff threat yet again</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>Why didn't Australia receive an exemption?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It's important to note no countries received an exemption.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"A 25 per cent tariff on steel and aluminium with no exceptions or exemptions will go into effect for Canada and all of our other trading partners at midnight, March 12th," White House spokesperson Kush Desai said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span></span></strong><span>Where Australia is a little different is that Trump said he would "give great consideration" to an exemption following a phone call with Prime Minister Anthony Albanese last month.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That sparked some hope that Canberra would be let off the hook, particularly given former prime minister Malcolm Turnbull had secured a similar exemption from Trump in 2018 – although such exceptions were more common then, and </span><a href="https://www.9news.com.au/national/malcolm-turnbull-abc-interview-donald-trump/23e6ce84-8b56-4629-b3c0-a97700909d59" rel="" target="" title="Turnbull himself has admitted a second such let-off was unlikely this time around"><span>Turnbull himself has admitted a second such let-off was unlikely this time around</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/wall-street-stock-market-falls-donald-trump-tariff-trade-war/be4f7741-8a99-45d0-bdcb-a304b08d01c8"><strong><span>Wall Street sell-off spirals after Trump tariff announcement</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><span>How will Trump's tariffs affect the Australian economy?</span></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The tariffs will clearly discourage US companies and consumers from buying Australian-made steel and aluminium.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>However, the exports of those two metals to the US make up a miniscule fraction of Australia's total trade output – "less than 0.2 per cent of the total value of our exports," Albanese noted – so it's unlikely to have a significant impact on the overall economy.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia also only exports about 10 per cent of its steel and aluminium to the US, so the remaining 90 per cent won't be directly hit by the tariffs, but their impact will still nonetheless be felt in the sector.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In terms of exports, aluminium and steel are only a fraction of the size of Australian mining sector," Dr Scott French from the University of NSW Business School said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"So, if you're looking at Australia as a whole, the direct effect on miners is smaller. But it's a bigger overall sector, so when you multiply that out it's probably the bigger of the two impacts for Australia overall."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/malcolm-turnbull-abc-interview-donald-trump/23e6ce84-8b56-4629-b3c0-a97700909d59"><strong><span>'Is that the depths you've sunk to?': Former PM blows up over Trump questions</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It could also spell trouble for specific steel and aluminium workers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This will be bad for the steelworkers of the Illawarra and the aluminium workers of Portland," University of Technology Sydney chief economist Tim Harcourt said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Where the tariffs – not just on steel and aluminium but all those announced by the White House – are having a broader impact is on the stock exchange.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Share markets like financial stability and dislike uncertainty, and Trump's chaotic approach to tariffs – such as </span><a href="https://www.9news.com.au/world/trump-halts-doubling-of-tariffs-on-canadian-metals-after-ontario-suspends-electricity-price-hikes/a6e670d1-31c3-47bd-8c9a-c26f3d4fdd3c" rel="" target="" title="promising to double duties on Canadian goods only to quickly U-turn on the commitment"><span>promising to double duties on Canadian goods only to quickly U-turn on the commitment</span></a><span> – is </span><a href="https://www.9news.com.au/world/donald-trump-cracks-now-starting-to-show-in-us-economy/e1b070ec-6caa-4caf-9ac2-3e677746d722" rel="" target="" title="sowing uncertainty on Wall Street"><span>sowing uncertainty on Wall Street</span></a><span>, which in turn is </span><a href="https://www.9news.com.au/finance/donald-trump-update-stocks-on-sp-500-dow-wall-street-wonders-how-much-pain-economy/e1757e30-2a8b-4685-8b9c-89636d909f23" rel="" target="" title="bleeding a sea of red onto the Australian stock exchange"><span>bleeding a sea of red onto the Australian stock exchange</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>There are also concerns that the steel and aluminium taxes could lead other nations, similarly deprived of free access to the US market, to flood Australia with an influx of cheap produce, which would be a financial hammer-blow to local producers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The one thing I've seen coming out of the industry is they're worried about foreign products flooding the Australian market and displacing the domestic manufacturing here," French said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>EXPLAINED:</span></strong><span> </span><a href="https://www.9news.com.au/national/federal-election-2025-when-is-it-earliest-latest-dates-double-dissolution-explained/a8dec667-4d33-46d6-b85a-ae4ea2b88b4b"><strong><span>The cyclone blew away an April election, so when will it be held now?</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>Are there any benefits for Australia from these tariffs?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While saying there are benefits for Australia from these tariffs is a bit of a stretch – there's a reason the federal government lobbied so hard for an exemption – there are some opportunities that will emerge.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Key among them is an increase in trade with nations to our north-west.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Australia already has trade agreements with most of its Indo-Pacific trading partners... I would expect trade to pick up between Australia and these other countries automatically," French said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Harcourt says other nations, including Canada, would also be in the frame.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The Albanese Labor government, to its credit, has improved relations with... Europe and the emerging markets of the Middle East and North Africa (MENA) and Latin America," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We could actually get closer to Canada under their new Prime Minister, given our similar economic and political backgrounds (if not geography) and current situation on steel and aluminium tariffs."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australian manufacturers could also step into the void of US produce as other nations slap Washington with retaliatory tariffs.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/labor-gains-slight-advantage-over-coalition-during-cyclone-alfred-new-poll/d52f5f91-2935-44f3-8210-fb6a2fbe7f38"><strong><span>Labor gains ground in latest polling, but hung parliament forecast</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>How is Australia responding?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While Canada, China and Mexico have all hit back at the US with tariffs of their own, Albanese said Australia will be taking a different route.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Australia will not be imposing reciprocal tariffs on the United States," the prime minister said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Such a course of action would only push up prices for Australian consumers and increase inflation."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>French says that is the right approach.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I can already feel the push for protective tariffs to keep out foreign products competing with domestic production," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I'm very, very wary of something like that because I find that Australia has done well by having very low trade barriers. And we don't want to go back to the experience from earlier decades where local manufacturing was very highly protected and very uncompetitive."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Instead, Australia is going to continue pushing for an exemption from the White House, while at the same time flagging new support for local producers.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In the March budget, we'll provide additional support for our Buy Australian campaign which we'll be announcing as part of the budget process," Albanese said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/how-to-follow-9news-digital/29855bb1-ad3d-4c38-bc25-3cb52af1216f" target="_blank"><strong><em><span>DOWNLOAD THE 9NEWS APP</span></em></strong></a><strong><em><span>:</span></em></strong><span> </span><em><strong><span>Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. 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