Australia has thrown its support behind its beef and wine producers amid fears the United States could expand tariffs to agricultural products.
Tariffs of 25 per cent on steel and aluminium have already come into effect following , and billions of dollars in Australian beef could be next on the chopping block.
Trade Minister Don Farrell said he would stand with beef, wine and other agricultural exporters to protect their interests and compared the situation to discussions that recently led China to lift similar trade restrictions on Australia.
As US President Donald Trump there is still limited information from his government about further tariffs. This makes estimating the potential impact difficult, but the US was Australia’s most valuable cattle industry export market in 2023-24, totalling about $3.4 billion according to Rural Bank.
Chris Parker, chief executive of Cattle Australia, a national peak body for the grass-fed cattle industry, said he is “extremely concerned” by Trump’s protectionist comments and will “vigorously oppose” any barriers to free trade and market access.
The federal government has so far rejected the idea of reciprocal tariffs — a position supported by Opposition leader Peter Dutton.
But Dutton told reporters on Friday there were some “worrying signs at the moment” and that he was concerned “about a second round” of tariffs.
“If the government doesn’t get its skates on, we’re going to have further tariffs applied to Australia,” he said.
Opposition leader Peter Dutton said he’s concerned “about a second round” of US tariffs. Source: AAP / Russell Freeman
The Opposition says the federal government should have Prime Minister Anthony Albanese meet with Trump to negotiate concessions.
But Farrell said it was important to note none of the countries that secured an exemption in Trump’s first term — including Australia — have managed to secure a repeat, regardless of whether they met with Trump.
If Australia is hit with beef tariffs, Farrell said it could try to diversify exports and enter trade agreements with other nations.
Trump says tariffs are a crucial tool to revitalise US industries that have withered due to decades of globalisation. But they have also sparked fears of global trade war, roiling financial markets and raised US recession fears.
Looking for ‘leverage’
Earlier on Friday, Opposition trade and tourism spokesperson Kevin Hogan told ABC Radio National he believes Australia has more “leverage points” it could use to secure an exemption on aluminium and steel tariffs than it did several years ago.
“We have some great critical minerals that are very important to them, especially some that they can’t access,” Hogan said.
The US has shown a strong interest in , most recently with Greenland and Ukraine.
Critical minerals include graphite, uranium, and lithium, a key component for electric car batteries.
Australian ambassador to the United States Kevin Rudd says the second Trump administration is more protectionist on trade policy, and more transactional in its negotiations. Source: Getty / John Lamparski
Currently, the US relies on China for these minerals, but a deal with Australia could reduce its dependency.
Australia’s ambassador to the US Kevin Rudd said his team has “thrown everything” at Trump’s administration.
In an interview with the ABC’s 7.30 program on Thursday night, Rudd refrained from confirming whether a critical minerals deal with the US was in the works, but said the US is vulnerable regarding supply of the rare resources.
Addressing reporters on Friday, Dutton said he doesn’t believe Australia should retaliate with tariffs but criticised Rudd as an ineffective ambassador.
“I’m sure he’s well intentioned but he can not open any doors, has no respect and has no relationship with the current administration — and that is a real problem for Australia,” he said.
A different administration
The second Trump administration had been more nationalist on foreign policy, more protectionist on trade policy, and more transactional in its negotiations, Rudd said.
“This administration is more nationalist on questions of foreign policy, more protectionist on trade policy, and much more transactional in its overall approach to international negotiations,” he said.
Negotiations focused on the long-standing free-trade partnership with the US, which has a trade surplus with Australia.
“Those arguments at this stage at least, have not prevailed,” he said, vowing not to give up on the difficult negotiations.
Rudd described the US as “Trumpian” in its hardline approach to “longstanding friends, partners and allies”.
“It’s been tough and hard, but we have delivered our arguments as equally firmly back so far.”
— With reporting by the Australian Associated Press
