Call for Australian-made mandate in face of tariff blow

A key union is calling for mandated use of Australian steel and aluminium in the nation's infrastructure and government buildings in the face of new tariffs. The relevant industries could not only survive but thrive in the face of Donald Trump’s import taxes if the government acted decisively, the Australian Workers’ Union said. It came after news that Australia had failed to win an exemption from a blanket 25 per cent tariff on aluminium and steel imports from US trading partners. “Australia’s purist free market approach on procurement was naive a decade ago, sticking to it now would be sheer idiocy," AWU National Secretary Paul Farrow said. "If government money is being used to build, say, a wind turbine then the towers should be made from Australian steel.“We know China and others have been dumping steel and aluminium below cost on our market and we need to stop that now. Allowing below-cost foreign steel into the country is a short-term sugar hit that would completely screw us tomorrow. "The government should act now and the Opposition should quickly back it."The Australian Chamber of Commerce and Industry (ACCI) described the Trump Administration's tariff move as deeply disappointing, saying it would harm Australian steel and aluminium exporters. “Australia and the United States signed a Free Trade Agreement in 2005 for the purposes of enhancing trade, and these tariffs run counter to that agreement," ACCI chief executive officer Andrew McKellar said. “Australia and the US have enjoyed a mutually beneficial two-way trade relationship for decades, and it is deeply disappointing to see the US imposing trade barriers between our countries. “Australian business has worked hand in glove with the Commonwealth Government to try to persuade the US Administration into continuing free trade on steel and aluminium." He said any ill-effects of these tariffs, both direct and indirect, must be monitored to ensure that business and policymakers had the best understanding of how to move forward. Gladstone alumina and aluminium producer Rio Tinto has declined to comment on the impact of the tariffs. The company's operations in Gladstone account for more than 3000 jobs, with 1000 of those at the Boyne aluminium smelter. The Australian Aluminium Council had no further comment than an update to a previous statement on the impact of the US tariffs on Australia’s aluminium trade. "We will continue working with the Australian government and its representatives on this important issue," chief executive officer Marghanita Johnson said. Australia accounts for an average of about 2.5 per cent of total US imports of aluminium (by volume).

Call for Australian-made mandate in face of tariff blow

Industry Queensland

Related News

Galilee teams up with Novus to tackle Glenaras complexities

Gold explorers dominate funding hierarchy

Scaffold service secures $60m-plus BMA contract

Get access to breaking mining news, now.