Australian Exports to Boost after U.S. Tariff Exemptions

On Monday, the aluminum and steel manufacturers in Australia stated that the exports to the United States would increase after securing exemptions from tariffs signed into law by U.S. President Donald Trump.

According to the statement of President Trump last Friday, Australia would be the third country to be free from a 20 percent tariff on steel imports and 10 percent for aluminum imports.

Last year, Australia exported just over A$400 million or $314.32 million, which makes the country a fairly small supplier of steel and aluminum to the U.S.

“This is a great outcome for us and... [for] jobs in North America,” stated Mark Vassella, Managing Director and Chief Executive Officer of BlueScope Steel, the biggest exporter of Australia.

“A win on both sides of the Pacific,” Vassella added.

Meanwhile, BlueScope shares on Monday increased more than 3 percent, beating the broader market, which recorded modest gains.

While the Australian exporters are rejoicing about the good news, producers, on the other hand, are worried that the U.S. tariffs could hit them indirectly, as exporters that are subject to the tariffs will try to find other markets for their aluminum and steel.

Australia is declining calls for additional laws to avoid possible dumping, as Australian Prime Minister Malcolm Turnbull stated that the existing measures were sufficient.

“There are 77 anti-dumping measures in place, 50 related to steel. Seven are related to aluminum. We want to ensure a level playing field. We are passionately committed to free trade, but it must be fair,” Prime Minister Turnbull said.

Australia would not join an international protest against the U.S. tariffs, according to Prime Minister Turnbull.

Last week, the trade minister of South Korea stated that it would take a dispute to the World Trade Organization against the United States for imposing high anti-dumping duties on South Korean steel and transformers.

Japan and European Union Press for Exemptions from U.S. Tariffs

Japan and the European Union have pressed the United States to exempt both countries from the steel and aluminum tariffs of U.S. President Donald Trump, firing their opening salvos as officials pursue to prevent a trade war with the largest economy in the world.

Meanwhile, Robert Lightizer, U.S. Trade Representative, has met with EU Trade Commissioner Cecilia Malmstrom and their Japanese counterpart, Hiroshige Seko, in Brussels as part of a trilateral effort to fight unfair trade practices.

“I had a frank discussion with the U.S. side about the serious pending issue of steel/aluminium tariffs,” Malmstrom stated on her social media account after holding a bilateral meeting with Lighthizer. “No immediate clarity on the exact US procedure for exemption however, so discussions will continue next week.”

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