Caught in trade crossfire
NORTH and central Queensland, already struggling with high unemployment, could be dealt another blow if US President Donald Trump’s aluminium tariffs go ahead.
More than 8000 jobs in Queensland are dependent on the aluminium and bauxite industry, from mines in Weipa to smelters in Gladstone.
Australia is not expected to be exempt from the proposed 10 per cent tariff on aluminium and 25 per cent on steel due to be imposed this week.
While the US purchases $127 million of Australian aluminium a year, the fear is its major suppliers will flood markets where Australia sells.
Boyne Smelters in Gladstone, which employs about 1000 people, cut jobs last year because of electricity prices.
Flynn MP Ken O’Dowd said he was concerned there would be more employment “trouble” for the port city.
“The tariffs are probably aimed at China, but if we get hit in the crossfire we’ll be hurt,” he said.
Rio Tinto reminded the US that Australian aluminium was an “integral part” of US defence industrial bases.
Resources Minister Matt Canavan, speaking from Toronto, said he was concerned by the issue and the government was examining what the precise impact might be.
Trade Minister Steve Ciobo said he wanted “more clarity” on the issue.
Aluminium is a $3.2 billion industry for Australia.