Albanese government condemns Trump's steel tariffs as 'unjustified' and 'not what you do to a friend', but won't retaliate

Sky News AU

31-05-2025

The Albanese government has intensified its criticism of US President Donald Trump's decision to double tariffs on imported Australian steel, but will not retaliate.
Employment and Workplace Relations Minister Amanda Rishworth told Sky News Sunday Agenda the government would continue to 'work through' the issue.
The hope at senior levels of the government is that after the Trump tariff approach has hurt the American economy, the mid-term elections next year will change the administration's approach.
'I'll echo exactly what the Trade Minister has said—these are unjustifiable moves and not what you do to a friend and an ally,' Ms Rishworth said on Sunday.
'We've continued to work through this and be in contact with Americans in the administration to work through in a methodical and consistent way.'
Ms Rishworth argued the tariffs were harmful to both nations and contrary to the longstanding cooperative relationship between Australia and the United States.
'More free trade between our two countries is in the interests of both our countries, and we will keep consistently putting this forward over and over again.'
The remarks come as President Trump prepares to raise tariffs on imported steel and aluminium from 25 per cent to 50 per cent starting Wednesday.
The move, part of what Trump calls a strategy to 'secure the steel industry' in the United States, has sparked widespread backlash from global trading partners.
Speaking on Saturday, Trade Minister Don Farrell labelled the decision 'the wrong course of action' and urged the US administration to reverse the hike immediately.
'This is not the act of a friend,' Mr Farrell said at a press conference.
'We believe this will simply push up the price for consumers in the United States and do nothing for the prosperity of both of our nations.
'The Albanese government believes in free and fair trade. We do not believe that this increase in tariffs is consistent with that.
'We call upon the Trump Administration to drop these tariffs and return to the tariff-free arrangement between Australia and the United States that exists under our free trade agreement.'
Australia exported $237 million in steel and iron products to the United States in 2023 and $275 million in aluminium in 2024, according to the United Nations Comtrade database.
The sudden tariff hike has put hundreds of millions of dollars in trade—and potentially tens of thousands of Australian jobs—at risk.
Asked whether Australia would retaliate, Mr Farrell said the government would adopt the same calm and strategic approach it used in resolving its trade dispute with China.
'We're going to do exactly what we did with China. We are going to coolly and calmly argue our case for the removal of these tariffs,' he said.
'People said when we came to office three years ago, you'll never get rid of $20 billion worth of tariffs — well, we did.'
Mr Farrell confirmed he had asked Australian Ambassador to the US Kevin Rudd to arrange a meeting with American counterpart Jameson Greer for negotiations in Paris.
'We need to put our arguments that this is the wrong economic policy,' he said.
'My job is to convince the Americans to reverse this decision and get back to a simple and sensible policy — free and fair trade with no tariffs.'
Prime Minister Anthony Albanese will have a highly-anticipated meeting with President Trump at the G7 Summit in Kananaskis from June 15 to 17, 2025.
President Trump's tariff plan has drawn criticism from other major trading partner, including Canada and the European Union.
The European Commission warned it would 'increase costs for consumers and businesses on both sides of the Atlantic.'
The EU has signalled it is prepared to impose countermeasures in response.
Back home, Minister Rishworth stressed that Australia would not be drawn into retaliation but would remain firm and diplomatic in pressing its case.