Treasurer Jim Chalmers flew to Washington to meet his counterpart, Scott Bessent, while Australian ambassador to the US Kevin Rudd met Commerce Secretary Howard Lutnick last Friday to plead Australia’s case.
However, Trump’s advisers had played down the chance of an exemption in recent days. White House National Economic Council director Kevin Hassett said the president did not like exemptions generally, and Leavitt indicated on Tuesday that no country would receive one.
Shadow trade minister Kevin Hogan said the Albanese government had failed in a “critical task”.
“During the Coalition’s time in government, we successfully negotiated exemptions from United States’ steel and aluminium tariffs,” he said.
Ontario Premier Doug Ford added a tariff onto electricity exported to the US.Credit: nnariwood
On Sunday night US time, Trump watched Turnbull speak against the tariffs on Bloomberg television and then posted on TruthSocial that Turnbull had been a “weak and ineffective leader” of Australia, prompting a war of words between the two men.
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Despite US markets plunging in recent days amid uncertainty over tariffs and the broader economy, Trump flagged his intention to persist with the 25 per cent levy on steel and aluminium imports.
But in a demonstration of the fluidity of the situation, he proposed – then wavered on – doubling the tariff on steel and aluminium from Canada to 50 per cent when the rates start on Wednesday, US time.
That move was in response to Ontario, Canada’s most populous province, imposing a 25 per cent surcharge on electricity exports to the US. “Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why?” Trump posted on his TruthSocial website.
“And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come!”
However, by Tuesday afternoon, the Ontario threat was suspended. The province’s Premier Doug Ford and US Commerce Secretary Howard Lutnick released a joint statement saying they had a productive conversation and would meet in Washington later in the week.
Trump and Musk speak to reporters near a red Model S Tesla vehicle at the White House.Credit: AP
Trump said he would probably retract his threat to double the steel and aluminium tariffs on Canada now that Ford had backed down, but repeated his view Canada was ripping off the US and should become its 51st state.
He made the comments while spruiking his friend and backer Elon Musk’s Tesla cars at a photo opportunity outside the White House. Musk was also present.
