- READ MORE: Tariffs: Three things Aussies must know about them
- PODCAST: The Prayer Breakfast drama with Trump, Elon Musk's plans to join the MAGA movement, and a Super Bowl that's more politics than football.
An anticipated effect of the US's tariffs on Australia's steel industry is that it will not be severe, and for some steel producers, including BlueScope Steel, it could potentially be advantageous.
Pressure is mounting on the government to secure a tariff exemption for domestic industry following the announcement by President Trump that inspections would be carried out.
A tariff on Australian goods would be a "slap in the face" for domestic industry and the US-Australian alliance, said Australia Industry Group chief executive Innes Willox.
"It is now up to the federal government to intervene promptly and safeguard Australian industry and producers from being entangled in a quickly escalating global trade conflict," he said.
'Declaring the reversal of these tariffs as a national priority, the government should utilize all available resources to expedite this turnaround immediately.'
Australian government ministers have been meeting with their incoming U.S. counterparts for months, advocating the case for exemptions from potential tariffs.
.
"Our bilateral economic relationship is a mutually beneficial one," Senator Farrell said.
Australian steel and aluminium production is generating thousands of well-paying American jobs. This industry is also essential for our shared defense interests.
Pepperstone's head of research, Chris Weston, said Australia's involvement in the US market is not significant, so the impact of tariffs would be quite acceptable in the bigger picture.
.
For some Australian metal producers, such as BlueScope Steel, the impact of the tariffs could potentially be advantageous.
'If you're a direct producer of steel and you're selling to the US market, you're going to feel the impact of this,' Mr. Weston said.
'If you are purchasing steel directly from the market and using it in the production of your final products, there may be a temporary decrease in steel prices that could positively impact your company.'
Shares in BlueScope rose by over two per cent on the Australian Securities Exchange on Monday morning.
Bluescope made a statement, expressing its willingness to collaborate with the Trump administration and the Australian government. It highlighted that the company has significantly invested in the US, generating substantial employment opportunities for Americans.
"We have recently invested two billion dollars in acquiring companies and growing our operations at our existing facilities," a spokesperson stated.
BlueScope is now the fifth-largest steel manufacturer in the United States, employing a workforce of 4,000 American employees.
About $15 billion was knocked off the ASX200's value within the first hour of trading - before the market rebounded.
Economist Chris Richardson stated that the primary implication of the tariffs for the Reserve Bank of Australia, as it considers the possibility of lowering interest rates for the first time in five years, is how they will affect inflation versus economic growth.
He said in a post on X, "I've been in the camp that believes, in relation to Oz, Trump is more of a growth concern than an ongoing inflation concern."
There's an increasing imbalance on both sides of the equation.
Read more