Australia’s Trade Minister Don Farrell rejected claims by the Trump administration that Australian aluminium exports were “killing” the US market, according to The Guardian.
Farrell also denied allegations that Australia breached a Morrison-era handshake deal to limit aluminium exports to the US, calling such trade barriers harmful and counterproductive.
The dispute stems from a voluntary commitment made by the former Morrison government in 2019, during a dinner between then-Prime Minister Scott Morrison and US President Donald Trump at the G20 summit in Japan. The agreement, described as an informal understanding, saw Australia limit its aluminium exports to the US to avoid tariffs.
However, Trump’s recent proclamation accused Australia of reneging on this deal, with his trade adviser, Peter Navarro, claiming Australian exports were “crushing” and “killing” America’s manufacturing sector.
No formal agreement found
Farrell stated that the Albanese government, which came to power in 2022, was unaware of any such agreement and had found no written or formal record of it.
This government, I believe, has complied with all of the arrangements set in place by the American government. I believe we’re complying with all of our obligations in terms of entry of our steel and our aluminium into the United States, and we’ll continue to do so.
The Trade Minister emphasised that Australia’s steel and aluminium exports had diversified in recent years, reducing reliance on the US market. He also highlighted the disproportionate impact of the tariffs, given Australia’s relatively small share of US aluminium imports.
According to the US Department of Commerce, Australia ranked eighth among aluminium exporters to the US in February 2025, with 97,421 metric tonnes exported, compared to Canada’s 3.3 million metric tonnes and the United Arab Emirates’ 392,080 metric tonnes.
Economic impact and diplomatic efforts
Farrell argued that imposing tariffs on Australia, which runs a trade deficit with the US, “doesn’t make any sense at all.” In 2024, Australia exported 23.8 billion worth of goods to the US while importing 50.6 billion.
He expressed uncertainty about when the Trump administration would decide on Australia’s exemption request but vowed to continue advocating for Australia’s interests.
Shadow Home Affairs spokesperson James Paterson echoed Farrell’s sentiments, stating that Australia’s steel and aluminium exports were too small to harm US industries. He criticised Prime Minister Albanese for not meeting Trump in person to build rapport and secure an exemption.
Despite the tensions, Trump described Albanese as a “very fine man” during a phone call between the two leaders and indicated he would give “great consideration” to Australia’s exemption request. However, government sources downplayed the likelihood of an imminent decision, with the tariffs set to take effect in mid-March.
