Trump tariff fear for Aussie steel

AUSTRALIA has begun urgently lobbying the US Trump administration for an exemption to steel and aluminium import tariffs amid fears it could lead to job losses — and potentially a recession.

US President Donald Trump yesterday confirmed he would sign off on the tariffs, with China the main target.

But allies including Australia and Canada appear likely to be punished too, as Mr Trump moves to protect US steel and aluminium producers.

Mr Trump met with executives from major US steel and aluminium producers at the White House before announc- ing a 25 per cent tariff on steel imports and 10 per cent on aluminium.

Federal Trade Minister Steve Ciobo said the decision, just a week after Prime Minister Malcolm Turnbull raised the issue with Mr Trump, was disappointing.

“The imposition of a tariff like this will do nothing other than distort trade and ultimately, we believe, will lead to a loss of jobs,” he said.

But shares in Australia’s biggest steel maker BlueScope yesterday closed up 13c, or 0.8 per cent higher at $16.325, because its significant US interests are likely to benefit from the proposed steel import tariff.

Australia is concerned however that retaliatory measures by other major economies could trigger a global economic slowdown.

“That is in no one’s interest,” Mr Ciobo said.

“If we see a breakout of action and reaction from major economies, the only thing that will arise from that will be a slowdown in economic growth and over time, if it got bad enough, we could see for example a recession.”

About $274 million of Australian steel and $276 million of aluminium exports to the US could be at risk, he warned.

Australia’s ambassador to the US Joe Hockey is seeking clarification on the announcement, and Mr Ciobo has asked to meet his US counterpart.

Mr Trump said China had benefited from the World Trade Organisation, while US steel and aluminium businesses had been destroyed by cheap products dumped in the US.

“What has been allowed to go on for decades is disgraceful,” Mr Trump said.

But reaction in the US was mixed, with some car makers warning the tariffs could force up car prices as key components became more expensive.