The Australian steel industry will continue seeking relief from the United States’ 25% tariff on steel and aluminium imports, following confirmation that the tariff will proceed.
The Australian Steel Institute (ASI) stated it would work with the Australian government to push for an exemption, as it had reportedly done under the previous Trump administration.
ASI Chief Executive Mark Cain expressed disappointment but reaffirmed the institute’s commitment to advocating for its members.
The Australian Workers’ Union (AWU), meanwhile, sees the tariffs as an opportunity for Australia to strengthen its domestic steel and aluminium industries through decisive government action.
AWU National Secretary Paul Farrow called for mandatory use of Australian steel and aluminium in public infrastructure projects and tougher measures against foreign products being sold below cost in the domestic market.
He argued that Australia must move away from what he described as a “naive” free-market approach to procurement, advocating for policies that support local manufacturing.
Economic experts, however, caution against reactionary protectionist policies. Dr Scott French from the UNSW Business School warned that while the tariffs would negatively impact Australian steel and aluminium producers, broader economic effects could be more significant.
He noted that the tariffs could disrupt global supply chains and reduce demand for key Australian exports, including iron ore.
Dr French also highlighted the potential for increased trade with Indo-Pacific partners as a result of shifting global trade dynamics.
Instead of protective tariffs, he suggested temporary, targeted support measures—similar to Australia’s JobKeeper program during COVID-19—to help manufacturers transition without long-term reliance on government intervention.
