Australia Boosts Aluminium Exports with U.S. Support, Says Trade Minister

HIGHLIGHTS:

• Australia's Trade Minister Don Farrell confirmed that aluminium exports to the U.S. increased with Washington's consent, helping progress Canberra's exemption request from U.S. tariffs.
• President Trump expressed willingness to consider an exemption for Australia from the 25% tariff on steel and aluminium, despite concerns from advisers about market impact.
• As Australia prepares for elections, Prime Minister Albanese's government unveils a A$2 billion plan to help aluminium smelters transition to renewable energy, protecting up to 75,000 jobs.

Australia's trade minister Don Farrell stated that the country had raised its aluminium exports to the U.S. with Washington's consent, helping to overcome a barrier to Canberra's request for an exemption from U.S. tariffs on aluminium and steel.

This week, U.S. President Donald Trump indicated he would consider granting Australia an exemption from the 25% tariff on steel and aluminium imports, before one of his top advisers claimed that Australia was "damaging our aluminium market."

The executive order imposing tariffs stated that aluminium imports from Australia had surged following a tariff exemption granted by Trump in 2018, with the country failing to honor a verbal pledge to limit aluminium exports.

However, Farrell explained that Australia had increased its aluminium exports with the approval of President Joe Biden's previous administration, in response to supply disruptions caused by Russia's ongoing war with Ukraine.

"All of that was done with the full knowledge of the American government. We haven't done - at any stage - anything that the American government has not been comfortable with," he said in an interview with state broadcaster ABC.

As the administration led by Prime Minister Anthony Albanese, which is center-left in orientation, readied itself for a national election expected in May, this particular government was in the process of promulgating an A$2 billion ($1.26 billion) grant program meant to encourage the transition to renewable energy among aluminium smelters, thereby securing, allegedly, 75,000 direct and indirect jobs.

The sixth-largest producer of aluminium in the world, Australia supplies 1% of American steel imports and 2% of American aluminium imports.