Tariffs talks: Treasurer labels US relationship ‘exceptional’ after ‘positive’ Washington meetings

Treasurer Jim Chalmers has labelled tariffs talks with US counterparts this week as “very productive” but maintains it is not his job to end the discussions as the Prime Minister works towards securing an exemption.

Australian officials are yet to secure a carve-out from President Donald Trump’s blanket 25 per cent tariffs on all steel and aluminium imports, which are set to come into force from March 12.

Mr Trump is considering Australia’s request for an exemption after a phone call with Anthony Albanese earlier this month.

Despite positive comments made after the phone call, threats of the tariffs remain after allegations from senior US trade officials that Australia is “flooding” the US market with aluminium — a contravention of a previous agreement.

Meeting with newly confirmed US Treasury Secretary Scott Bessent, Dr Chalmers said the final call was in Mr Trump’s hands but described the discussions as “positive”.

“My job wasn’t to conclude those discussions, it was to inform them.

“Australia has a very strong case to make about why we are different to some of the other countries that are of greater concern to our American friends.”

He said Australia held a trade surplus with the US and that the nation’s steel and aluminium sectors were “not big competitors” with local industries but making a “positive contribution”.

The Treasurer said Australia did not take any outcome for granted concerning the steel and aluminium tariffs.

Dr Chalmers said he also discussed global economic uncertainty, how Australia has managed pressures and maximising “opportunities ahead” with his US counterparts.

He also met with US National Economic Council Director Kevin Hassett alongside Australia’s ambassador to the US, Kevin Rudd.

Dr Chalmers echoed Mr Albanese’s recent spruiking of Australia’s “rock solid” defence partnership with the US.

“We’re an enthusiastic partner when it comes to Defence. It’s an economic relationship of mutual benefit full of big opportunities,” he said.

The Prime Minister had told ABC’s Q&A program earlier in the week that he was confident the US would defend Australia if it were to come under attack, despite the change in leadership.

Asked if he thought the agreement was “rock solid”, the prime minister replied simply “yes”.

“We do, we have an Anzus agreement (The Australia, New Zealand and United States Security Treaty) and an alliance with the United States.”

Dr Chalmers spoke at a superannuation summit in the US earlier in the week alongside chief executive from some of Wall Street’s biggest firms .

RBA deputy governor Andrew Hauser told Senate estimates on Thursday the board were keeping a watchful eye on foreign trade policy and were ready to act on a range of scenarios.

“This is clearly a very substantial and rapidly evolving issue,” he said.

“Most macroeconomic forecasters at the moment would struggle to put any single number on the impact on Australia or anywhere else.

“And so what we’ve done, in regard to monetary policy, is set out three different scenarios about possible tariffs in the US.

“Then questions about whether the countries that are targeted, China in particular, in this case, choose to retaliate.”