Mercury (Hobart)

Bishop’s urgent plea to escape US tariffs

- JEFF WHALLEY

AUSTRALIA is in a race against the clock to secure reprieves from US steel and aluminium tariffs expected to be ratified by President Donald Trump within days.

Foreign Affairs Minister Julie Bishop said yesterday Australia was appealing directly to the US Government for the same exemptions expected for Canada and Mexico.

Australia should be included on the same “national security” grounds, she said.

Ms Bishop said she was tak- ing her case to US Secretary of State Rex Tillerson, who she was “scheduling a call with”.

“I can’t judge or comment on the tone or the circumstan­ces, but I’ll most certainly be putting the case to Secretary Tillerson that if there are exemptions to be made, then Australia should be among those countries exempted,” she told Sky News.

“The Australian Government is determined to continue to advocate that Australia should be exempted from this.”

Mr Trump is expected to sign the tariffs into law by the end of the week despite the pleas for an about face from affected countries, other senior leaders in his Republican Party and businesses, who have warned it could ignite a trade war.

The flourish of Australian diplomatic activity comes after White House press secretary Sarah Huckabee Sanders said Mexico, Canada and other countries may be spared from Mr Trump’s planned steel and aluminium tariffs under national security “carve-outs”.

The exemptions would be made on a “case-by-case” and “country-by-country” basis.

It marked a significan­t backdown from the position of the Trump administra­tion earlier this week, whereby there would be no exemptions.

Ms Bishop said increased tariffs risked retaliatio­n.

“Action then brings reaction, and we don’t think that will be in the least bit productive,” she said.

“Should the United States continue down this path, Australia should be exempt as a very close ally and partner of the United States.”

Analysts said the exemption for Canada would come as some relief for Anglo-Australian mining heavyweigh­t Rio Tinto, with about 75 per cent of its Canadian aluminium output shipped to the US.

Rio shares climbed 0.6 per cent yesterday to $75.18.

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