Australian Exports to Grow after Securing U.S. Tariff Exemptions - Industry

Australian steel and aluminum manufacturers recently said exports to the United States will grow after securing exemptions from tariffs signed into law by U.S. President Donald Trump.

Trump on Friday said Australia would become the third country to be free from a 25 percent tariff on steel imports and 10 percent for aluminum.

Exporting just more that A$400 million ($314.32 million) last year, Australia is a relatively small supplier of steel and aluminum to the United States.

“This is a great outcome for us and... (for) jobs in North America,” according to Mark Vassella Managing Director and CEO of BlueScope Steel, which is Australia's largest exporter.

Shares in BlueScope gained over three percent on Monday, outperforming the broader market, which marked modest gains.

While it was good news for Australian exporters, producers fear the U.S. tariffs could hit them indirectly, as exporters that are subject to the tariffs try to find other markets for their steel and aluminum.

Rejecting calls for additional laws to prevent potential dumping, Australian Prime Minister Malcolm Turnbull said existing measures were sufficient. Turnbull also said Australia would not join an international protest against the U.S. tariffs.

Prime News are provided by InstaForex