Donald Trump has issued a crushing blow to the Albanese government after refusing to grant Australia an exemption from its tariffs on steel and aluminium imports

Donald Trump has issued a crushing blow to the Albanese government after refusing to grant Australia an exemption from its tariffs on steel and aluminium imports. 

White House Press Secretary Karoline Leavitt revealed that Australia would not be exempt during a press conference at the White House on Wednesday (AEDT).

Ms Leavitt was asked whether Australia would be spared from the 25 per cent tariffs and told Australian media outlets Trump had ‘considered it and considered against it’. 

‘There will be no exemptions,’ Ms Leavitt said. 

She added the United States was prioritising ‘American-first steel’ and that Australia would have to ‘consider moving steel manufacturing’ to the US in order to be exempt from the tariffs. 

The tariffs will be imposed from 3pm on Wednesday (AEDT). 

Prime Minister Anthony Albanese on Monday said the government would ‘continue to engage constructively’ with the United States on an exemption to the tariffs.

‘It is in Australia’s interest, but it’s also in the economic interests of the United States for Australia to be exempted,’ Mr Albanese said. 

Donald Trump has issued a crushing blow to the Albanese government after refusing to grant Australia an exemption from its tariffs on steel and aluminium imports

Donald Trump has issued a crushing blow to the Albanese government after refusing to grant Australia an exemption from its tariffs on steel and aluminium imports

It comes after Trump told Albanese last month that he would give the prospect of an exemption ‘great consideration’. 

However, White House Senior Counselor for Trade and Manufacturing Peter Navarro later said Australia was ‘killing’ America’s aluminium industry. 

Following Mr Navarro’s comments, Australian Ambassador to the United States Kevin Rudd and treasurer Jim Chalmers engaged in a series of meetings to discuss an exemption. 

However, Foreign Minister Penny Wong admitted at the end of February that Australia had a ‘hill to climb’ when it came to discussions over the tariffs. 

Australia has argued it should be granted an exemption as it has a trade surplus – and not a trade deficit like most other countries – as it imports more from the United States than it exports. 

Australia’s Minister for Housing Clare O’Neil said negotiations ‘will continue to the very last moment’ as the government fights against the imposed tariffs. 

‘We have a never-say-die approach to these things. It is obviously in Australia’s best interests for these tariffs not to be imposed,’ Ms O’Neil told Sunrise on Wednesday.

‘We are doing everything we can and fighting with every single tool we have available in order to get ourselves in the best possible position. 

White House Press Secretary Karoline Leavitt explained the United States was prioritising 'American-first steel' and that Australia would have to 'consider moving steel manufacturing' to the US in order to be exempt from the tariffs

White House Press Secretary Karoline Leavitt explained the United States was prioritising ‘American-first steel’ and that Australia would have to ‘consider moving steel manufacturing’ to the US in order to be exempt from the tariffs

‘We’re still continuing those negotiations and discussions. That will continue till the very last moment.’ 

More to come…

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