US accuses Australia of breaking ‘verbal commitment’ on aluminium exports as Trump weighs tariffs exemption | Australian foreign policy

Donald Trump has called Australia’s prime minister a “very fine man” and said he would give “great consideration” to exempting the country from his new 25% tariff on steel and aluminium imports, after a call between the two leaders.

It followed comments on Tuesday from the US president that there would be no exceptions or exemptions on his new 25% tariff on aluminium and steel, which will start on 12 March unless Anthony Albanese can secure an exemption first.

The official proclamation to impose the aluminium tariff appeared to explain why Australia was not exempted from the outset, with the US accusing Australia of breaking a “verbal commitment” to limit aluminium exports.

The new proclamation read: “The volume of U.S. imports of primary aluminum from Australia has also surged and in 2024 was approximately 103% higher than the average volume for 2015 through 2017. Australia has disregarded its verbal commitment to voluntarily restrain its aluminum exports to a reasonable level.”

Former prime minister Malcolm Turnbull negotiated a carve out from steel and aluminium tariffs during Trump’s first term.

Asked about the proclamation on Tuesday night, deputy prime minister and defence minister Richard Marles told ABC’s 7.30: “I can’t speak for the former government, in terms of what it did or didn’t do … but in the discussion that was had today, in the president’s own press conference, having signed the executive order, he made clear that Australian exemptions to this order would be under active consideration. And that’s where this is now at.”

Earlier on Tuesday, Albanese said his second call with Trump had been a “very positive and constructive discussion”, which canvassed the Aukus defence pact, critical minerals and foreign investment between the two countries.

Albanese said he had also made the case for Australia to be exempted from tariffs and was hopeful of such an outcome.

“If you have a look at what we’ve achieved already, it’s been a tremendous start to the relationship,” Albanese told a press conference in Parliament House.

Minutes later, the White House announced that the president was signing executive orders to place a 25% tariff on the imports, stepping up a long-promised trade war.

Trump initially said the tariffs would be imposed without exceptions but then confirmed he was giving “great consideration” to an Australian carve-out.

Asked about his call with Albanese, Trump called the Australian leader “a very fine man” and noted the US trade surplus with Australia.

“We have a surplus with Australia, one of the few … I told him that [exemptions] is something we will give great consideration,” Trump said.

The opposition leader, Peter Dutton, also publicly urged the Trump administration to exempt Australia from tariffs, claiming any move to the contrary would “damage the relationship” between the two countries.

“Tariffs are not warranted against Australia because we have a trade surplus,” he said.

Australian politicians were rocked on Monday when Trump told reporters in the US that he planned to announce new tariffs on all steel and aluminium arriving in America.

skip past newsletter promotion

after newsletter promotion

The Labor government been bracing for such a decision after Trump levelled similar tariffs in his first term, with senior ministers and officials working behind the scenes for some time to secure exemptions like those secured by the then-Coalition government after months of negotiations in 2018.

“Our aluminium is a critical input for manufacturing in the United States,” Albanese said on Tuesday after his call with Trump. “Our steel and aluminium are both key inputs for the US-Australia defence industries in both of our countries.

“I presented Australia’s case for an exemption and we agreed on wording to say publicly, which is that the US president agreed that an exemption was under consideration in the interests of both of our countries.”

Albanese would not reveal more about the process by which the exemption would be considered, the timeline by which a decision would be reached, or what Australia would do if the exemption was ultimately rejected. He said he would not speak for Trump but again referred warmly to the Australia-US relationship.

“What I envisage is continuing to act to respond diplomatically,” he said. “That’s how you get things done. My government’s got a record of getting things done in Australia’s national interest. I’ll continue to do so.”

A US congressman has hit out at any attempt to slap tariffs on Australian products.

Joe Courtney, a Democratic politician and co-chair of the Friends of Australia Caucus,, noted that Australia had just this week begun sending payments to Washington as part of the Aukus pact to help bolster the US submarine construction program.

“What we’re seeing is a completely needless, almost insult to the people of Australia by raising tariffs of Australian products coming into this country,” Courtney said.

The shadow trade minister, Kevin Hogan, suggested that the government should “reach out to whoever may help” Australia secure exemptions, including the former Coalition politicians Scott Morrison and Joe Hockey.

“I encourage the prime minister and indeed ambassador [Kevin] Rudd to talk to people like Morrison, people like Hockey,” he told the ABC. “We had a precedent when we got an exemption, they should be using those resources.”