Australia is urging the United States to grant it an exemption from the planned tariffs on all steel and aluminum imports. Experts warn that the imposition of such tariffs could have far-reaching consequences beyond the Australian steel and aluminum industries, potentially posing broader risks to the nation's economy. Shortly after U.S. President Donald Trump announced his intention to impose 25 percent tariffs on all steel and aluminum imports, Australian Prime Minister Anthony Albanese contacted the US leader. The prime minister said that he presented Australia's case for an exemption and reached an agreement on the wording to be publicly disclosed. The U.S. president acknowledged that an exemption for Australia was under consideration. Approximately 10 percent of the steel and aluminum produced in Australia is exported to the US, with a value of around 1 billion U.S. dollars. However, Australia is a relatively minor supplier of metals compared to countries such as China and Canada, accounting for only 2 percent of U.S. aluminum imports and 1 percent of steel imports. Australian Trade and Tourism Minister Don Farrell argued that it makes little sense for the US to impose tariffs on a country with which it has a trade deficit. One of Australia's two major steelmakers, BlueScope Steel, could benefit from the proposed tariffs due to its steel-making operations in the US. However, the company is concerned about the broader global impacts of such tariffs on Australia. "BlueScope Steel is concerned that if China can't export as much steel to the US as it has been doing for a long time, then China might seek alternative markets for that steel and Australia could be one of those," said Saul Eslake, an independent economist. Australia's aluminium industry is also concerned about the broader impact, noting that it contributes 18 billion U.S. dollars to the country’s economy and employs tens of thousands of people. "We need to observe Canada and see how they are going to navigate because if they decide to dump their aluminium and steel onto global markets, then there is going to be even more price slumps in global markets," said Medo Pournader, a lecturer at the University of Melbourne. Experts highlight another reason for Australia's concern: iron ore, the country's largest and most profitable export commodity. Approximately three-quarters of Australia's iron ore is processed and used to make steel in China. According to Pournader, any impact on China's economy that reduces demand from China would have a knock-on effect on Australia. The U.S. tariffs on steel and aluminum imports are scheduled to take effect in March. SHOTLIST: FILE: Kwinana, Australia - Nov 2-3, 2022 1. Aerial shots of sea, Tianqi plant; 2. Various of Tianqi plant; Sydney, Australia - Feb 25, 2025 3. SOUNDBITE (English) Saul Eslake, independent economist (starting with shot 2): "BlueScope Steel is concerned that if China can't export as much steel to the US as it has been doing for a long time, then China might seek alternative markets for that steel and Australia could be one of those."; FILE: Jiangsu Province, east China - Date Unknown 4. Interior of steel plant; 5. Molten iron on production line; 6. Iron being cut; Sydney, Australia - Feb 25, 2025 7. SOUNDBITE (English) Medo Pournader, lecturer, University of Melbourne (starting with shot 6): "We need to observe Canada and see how they are going to navigate because if they decide to dump their aluminium and steel onto global markets, then there is going to be even more price slumps in global markets."; FILE: Washington D.C., USA - October 2024 8. Various of White House, U.S. national flag; Washington D.C., USA - Jan 20, 2025 9. Various of White House, traffic. [Restrictions: No access Chinese mainland]