Trump reneges on trade promise

DONALD Trump has reportedly reneged on a promise he made to exempt Australia from import tariffs.

The US President sent global markets tumbling last week after he vowed to impose a 25 per cent tariff on steel imports and 10 per cent tariff on aluminium imports, sparking fears of a global trade war.

Australia, Canada and several European nations were hoping to be exempt from the rule, but White House trade adviser Peter Navarro confirmed on Sunday it would be applied “across the board”.

According to the ABC, the US President “emphatically” promised Australia would be exempt from the tariffs while meeting with Prime Minister Malcolm Turnbull at the Hamburg G20 meeting in July.

The conversation was witnessed by Finance Minister Mathias Cormann; the Deputy Secretary of the Department of Prime Minister and Cabinet, David Gruen; and members of Mr Trump’s administration.

Australia exports an estimated $274 million of steel and $276 million of aluminium to the US, which imports more than 36 million tonnes of steel and five million tonnes of aluminium a year.

Despite threats of retaliation from across the world, including senior members of his own party, Mr Trump confirmed yesterday the administration was “not backing down”.

The European Union is said to be preparing retaliatory measures.