Reports the US administration is considering a uniform 25% tariff on all steel and aluminium imports are a stark reminder of the volatility of global trade, Minerals Council of Australia CEO Tania Constable says.
President Donald Trump has flagged 25% tariffs on all imports of steel and aluminium into the US. While he did not specify when those new duties would come into effect, the US President made it clear they would apply to all countries.
Constable says while these tariffs are not yet final, any such move would have significant implications for Australian industry.
“Steel and aluminium are not just key to industrial production but are critical to defence, technology, and advanced manufacturing supply chains. Aluminium production, in particular, plays a vital role in securing minerals like gallium and germanium, which are essential to power modern technologies,” says Constable.
“These proposed tariffs set a concerning precedent. Action is needed now to ensure that trade restrictions do not expand to critical minerals and other resources that are vital to Australia’s economic future and global supply chains.
“The real question is whether Australia is in the best position to weather these global changes. Right now, we aren’t. While our competitors are cutting costs and attracting investment, Australian industry is being weighed down by policies that make it harder to invest, expand, and compete. If we don’t fix this, we risk losing the very industries that keep our economy strong.”
Australia exports about $1 billion worth of aluminium, iron, and steel to the US every year.
The Minerals Council of Australia has been working closely with the Department of Foreign Affairs and Trade and Australian agencies in Washington to assess the risks and implications of these tariffs.
Australia has long been a reliable and trusted supplier of these materials to the world, and the country’s strong trade and defence relationship with the US has underpinned decades of economic and strategic cooperation, Constable says.
“It is vital that this partnership continues, ensuring stable supply chains and mutual benefit for both nations,” she continues.
“Governments can’t control global trade, but they can control how competitive we are. That means removing barriers to investment, keeping costs down, and ensuring Australia remains an attractive place to do business.
“Now the government must take decisive action and put in place the policies needed to secure the future of some of our most important industries.”
Prime Minister Anthony Albanese told Parliament yesterday he will explain to Trump that exempting Australian companies from such tariffs is in America’s national interest.
During question time, the PM said he will make clear to Trump that Australian companies had significant investment in the US and contributed to thousands of jobs, therefore making it in the interests of both countries for Australia to have exemption from the tariffs.
The free on board Australian alumina price reached record highs in Q4 2024 due to reduced supply of alumina and bauxite from Guinea and Australia. High alumina prices are expected to push the London Metal Exchange (LME) primary aluminium spot price above US$2,500 a tonne in 2025 and 2026.
Over the outlook period, Australian primary aluminium output is expected to be stable at 1.6 million tonnes a year. Australian alumina output may fall under 18Mt a year, but Australian bauxite output should rise to over 100Mt a year.
High Australian alumina prices and bauxite export volumes are forecast to drive Australia’s AAB export earnings to a new record high of $20 billion in 2024–25.
The Minerals Council works with all nations to promote multilateral trade arrangements, support economic integration, counter protectionism and maintain a global rules-based order through the World Trade Organisation.
Part its mission is to ensure Australia’s foreign investment and domestic policy and regulatory settings make Australia a competitive destination for investment. Continuing current production levels relies on sustaining capital investment of some $20 billion per annum.
Capturing the opportunity presented by the transition to net zero requires Australia to attract an order of magnitude more, the council says on its website.
Write to Adam Orlando at Mining.com.au
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