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Key Points
- Prime Minister Anthony Albanese and US President Donald Trump had a 40-minute call on Tuesday.
- Central to the discussions was whether Australia would be exempt from the new tariffs on aluminium and steel.
- The Minerals Council has warned the tariffs could set a “concerning precedent” for Australia’s economic future.
Following the 40-minute call with Albanese, Trump described the prime minister as a “very fine man”.
Earlier, Albanese said he stressed the benefits of Australia’s trade relationship with the US, set to rise to US$7 billion ($11 billion) over the coming decade, during Tuesday’s call with Trump.
A tariff is a tax imposed when foreign goods are imported into a country, often pushing up the price of a product to cover the extra fee. In contrast, a locally produced product would be levy-free and possibly cheaper.
“The real question is whether Australia is in the best position to weather these global changes. Right now, we aren’t,” she said in a statement.
“Australia has a good story to tell — the US has a trade surplus with us and we have long-standing cultural and military ties between countries, particularly with the significant AUKUS agreement,” he said.
“I want there to be a very clear message to the Trump administration that we don’t believe that this tariff should be put in place and if it remains in place, then I believe it will damage the relationship between the United States and Australia.”