Trump's adviser: Australia "killing" US aluminium market

Australia's efforts to secure an exemption from upcoming US steel and aluminium tariffs faced a potential setback after a senior trade adviser to President Donald Trump accused Australian exporters of flooding the US market.

On February 11, Peter Navarro, the president’s senior counsellor for trade and manufacturing, said that Australia had breached an earlier agreement on aluminium exports, Caliber.Az reports, citing citing foreign media.

“Australia is just killing our aluminium market,” Navarro told CNN, according to a transcript. “President Trump says no, no, we’re not, we’re not doing that anymore.”

Trump this week ordered 25% tariffs on all steel and aluminium imports starting March 12, with no exemptions, though he said he would “give consideration” to some possible leeway for Australia. The move comes after Prime Minister Anthony Albanese spoke with Trump by telephone on February 11, seeking an exemption ahead of Australia’s federal election, which must be held by May 17.

Australian Treasurer Jim Chalmers downplayed the controversy, pointing out that past negotiations took place nearly a decade ago.

“Australians, particularly in the steel and aluminium industries, would expect us to be focused on what’s in front of us,” Chalmers told Channel 9. “And that’s why that positive and productive conversation that Prime Minister Albanese had with President Trump yesterday is so important.”

Trump’s proclamation imposing the tariffs showed that US imports of primary aluminium from Australia surged to 103% above the average volume for 2015-2017, according to the Australian Broadcasting Corp.

“They just flood our markets,” Navarro said. “That’s what we’re dealing with. Our aluminium industry is on its back.”

According to government data, Aluminum is Australia’s top manufactured export, but the US accounted for just 2.4% of shipments in 2024. However, the US remains a key market for Australian steel, accounting for about 30% of the sector’s exports.

Furthermore, a White House official said US President Donald Trump's planned 25% tariffs on steel and aluminium imports would pile on top of other levies on Canadian goods, resulting in a total 50% tariff if threatened duties on all imports from Canada are enacted in March.

On February 10, Trump signed proclamations raising the U.S. tariff rate on aluminium to 25% from his previous 10% rate and eliminating country exceptions and quota deals as well as hundreds of thousands of product-specific tariff exclusions for both metals.

The measures, due to take effect on March 12, will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the U.S. duty free under the carve-outs.

By Khagan Isayev