US President Donald Trump’s trade adviser, Peter Navarro, has claimed Australia is conducting a ‘frontal assault’ on American aluminium markets. Allegations regarding the possible manipulation of trade loopholes by Australian aluminium producers have surfaced, causing concern within the US administration.
American steel and aluminium tariffs imposed by the Trump administration in 2018 were initially aimed at curbing the influence of China’s steel surplus. However, Navarro now accuses Australia, exempted from these tariffs, of taking advantage of its tariff-free status in the US. According to him, this has led to an exponential surge in aluminium exports from Australia to the US.
The surge in exports, Navarro contends, negates the purpose of the original tariffs imposed to protect American manufacturers. He expressed his views candidly, stating “We have had a tremendous amount of problem with Australia; they are manipulating the tariffs by the transshipment and other means”.
Australian Trade Minister, Simon Birmingham, refutes these allegations, stressing that Australia plays by the rules. Pointing to Australia’s exemption from the US tariffs, Birmingham articulates that American authorities approved this concession considering the fair and reciprocal trade relationship between the duo. He added, “I would urge the US to think twice before triggering another dispute over tariffs with its close partner, Australia”.
The alleged exploitation of trade loopholes by Australian aluminium suppliers, the subsequent surge in exports to the US, and the consequent mounting tension demand a resolution. As the conflict deepens and the allegations remain unaddressed, further discussions between the two nations seem imperative to clarify their future trade relations.
Last modified: March 5, 2025
