Australia looks to Asian markets as it braces itself for Trump s tariffs

SYDNEY – Australia is quietly making contingency plans for the impact of Mr Donald Trump’s steel and aluminium tariffs even as it urgently tries to persuade the US President to provide an exemption as he did in his first term.

In a sign of the fading hopes in Canberra of winning a reprieve from the proposed 25 per cent tariffs, Australian Trade Minister Don Farrell has encouraged steel and aluminium exporters to look to alternative markets such as Japan, South Korea, India and countries in South-east Asia.

The United States accounts for about A$1 billion (S$837 million) of purchases of Australian steel and aluminium each year, or about 10 per cent of total Australian exports. The US is the largest export destination of Australian steel and the third-largest of aluminium.

Mr Farrell was said to have met steel and aluminium producers and trade organisations from the industry last week to discuss plans to diversify exports.

The Australian Trade and Investment Commission and the Department of Foreign Affairs and Trade are believed to be helping the industry to deal with the potential tariffs, which are due to go into effect on March 12.

Mr Farrell told The Straits Times on March 11 that the government was adopting a “calm, persistent” approach to press its case with Washington.

“Australia and the United States are trusted partners, and we are using every opportunity to make it known to our friends in America the immense benefits of our partnership,” he said.

“When it comes to trade more broadly, the government has been working hard to help expand opportunities for Aussie businesses to enter new markets. This includes... strengthening economic ties with South-east Asia and India through a range of investment and business initiatives.”

Currently, South Korea is the biggest buyer of Australian aluminium, accounting