‘Unjustified': Donald Trump claims steel tariff will double, as Australia lashes surprise move
Donald Trump has claimed the tariff rate on steel will double to 50 per cent, drawing the ire of the Australian government.
The US President blurted out the latest development in his trade war at a steel mill rally in Pennsylvania, on Saturday morning Australian time.
Australian Trade Minister Don Farrell said the latest tariff hike was unjustified.
'Australia's position has been consistent and clear. These tariffs are unjustified and not the act of a friend,' he said in a statement.
'They are an act of economic self harm that will only hurt consumers and businesses who rely on free and fair trade.
'We will continue to engage and advocate strongly for the removal of the tariffs.'
US government data shows the price of steel products into the US have increased by 16 per cent since Trump's second term began.
Australian car parts, steel and aluminium are currently being slapped with a 25 per cent levy, as per Trump's sweeping protectionist policies.
The Pennsylvania rally on Friday was near a factory owned by US Steel, and the President said Japanese steel giant Nippon had invested in the American firm.
'We're here today to celebrate a blockbuster agreement that will ensure this storeyed American company stays an American company,' the President said.
'You're going to stay an American company, you know that, right?'
'If you don't have steel, you don't have a country. You don't have a country, you can't make a military. What are we going to do? Say, 'Let's go to China to get our steel from the army tanks',' Trump said.
The Trump administration initially promised to block Nippon's bid to buy US Steel. Details of the 'blockbuster agreement' have not been released. Nippon confirmed in a statement a proposed 'partnership' had been agreed to.
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