Australia won’t retaliate against ‘unjustified’ US tariffs on steel and aluminum

MELBOURNE, Australia (AP) - Australian Prime Minister Anthony Albanese said Wednesday that U.S. tariffs on Australian steel and aluminum were unjustified, but his government would not retaliate with its own tariffs.

U.S. President Donald Trump said last month he was considering a tariff exemption for Australia, a free trade treaty partner that has traded with the United States at a deficit for decades.

A former Australian government secured an exemption with the previous Trump administration in 2018 based on arguments including that Australian steelmaker BlueScope employs thousands of workers in the U.S.

Albanese said he would continue to pursue an Australian exemption. The 2018 exemption took several months to secure.

"It has been foreshadowed that no country regardless of its relationship with the United States has been granted an exemption. Such a decision by the Trump administration is entirely unjustified," Albanese said.

"Tariffs and escalating trade tensions are a form of economic self-harm and a recipe for slower growth and higher inflation. They are paid by the consumers. This is why Australia will not be imposing reciprocal tariffs on the United States," Albanese added.

The U.S. officially increased tariffs on all steel and aluminum imports to 25% on Wednesday.

The U.S. decision not to exempt Australia was announced days after a spat became public between Trump and the former Australian prime minister who secured the 2018 exemption, Malcolm Turnbull.

Trump described Turnbull, who quit politics in 2018 after being overthrown as prime minister by his own government, as a weak and ineffective leader.

"Malcolm Turnbull, the former Prime Minister of Australia who was always leading that wonderful country from ‘behind’, never understood what was going on in China, nor did he have the capacity to do so," Trump wrote on social media.

"I always thought he was a weak and ineffective leader and, obviously, Australian's (sic) agreed with me!!!" Trump added.

Trump was responding to an interview Turnbull gave this week to U.S. media company Bloomberg in which the former Australian leader said Chinese President Xi Jinping would take advantage of the U.S. president’s chaotic and erratic leadership.

"I think China will take advantage, massive advantage of Trump," Turnbull told Bloomberg.

"What my prediction will be that President Xi will aim to be the exact opposite of Trump. Where Trump is chaotic, he will be consistent. Where Trump is rude and abusive, he'll be respectful. Where Trump is erratic, he will be consistent," Turnbull said.

"And what that will do is build trust with countries, and there'll be many countries who will, you know, looking at China on the one hand and Trump on the other, will find China a more attractive partner," Turnbull added.