In a concerted effort to shield Australia’s steel and aluminium industries from impending U.S. tariffs, Treasurer Jim Chalmers has engaged in high-level discussions with U.S. Treasury Secretary Scott Bessent. The talks, held at the Australian Embassy, center on Australia’s plea for exemption from the 25% tariffs set to take effect on March 12, 2025.
Chalmers emphasizes Australia’s unique trade relationship with the United States, highlighting the substantial trade surplus the U.S. enjoys over Australia. He argues that this imbalance, coupled with Australia’s role as a key ally and trading partner, warrants consideration for tariff exemptions. “The Americans run a very substantial trade surplus with Australia,” Chalmers notes, underscoring the mutual benefits of the bilateral trade relationship.
In parallel, Australia is showcasing its robust superannuation industry as a strategic investment partner for the U.S. During the Australian Superannuation Investment Summit in Washington, D.C., Chalmers and a delegation of Australian super fund executives outline plans to significantly increase investments in U.S. infrastructure and private markets. Currently, Australian super funds have approximately US$400 billion invested in the U.S., with projections suggesting this could exceed US$1 trillion by 2035.
This potential influx of capital aligns with the U.S. administration’s ‘America First Investment Policy,’ which encourages foreign investments from allied nations. By positioning Australian superannuation funds as reliable, long-term investors, Australia aims to strengthen economic ties and underscore the benefits of mutual investment. “This capital presents an important and valuable opportunity for the United States,” states David Whiteley, IFM Investors’ Global Head of External Relations.
Despite these efforts, the final decision on tariff exemptions rests with President Donald Trump. While Prime Minister Anthony Albanese has engaged in direct discussions with President Trump, the administration’s stance remains uncertain. Senior U.S. trade officials have expressed concerns about Australia’s impact on the U.S. aluminium market, complicating the exemption negotiations.
As the March 12 deadline approaches, Australian officials continue to advocate for exemptions, emphasizing the strategic and economic advantages of a cooperative trade relationship. The outcome of these discussions will have significant implications for both nations’ industries and their broader economic partnership.
Sources:
Jim Chalmers Meets US Treasury Secretary to Secure Tariff Exemption
InDaily
IFM Investors
The Australian
