Jim Chalmers Meets US Treasury Secretary to Secure Tariff Exemption
Australian Treasurer Jim Chalmers is in Washington, D.C., this week for high-stakes talks with US Treasury Secretary Scott Bessent as the Albanese government races to secure an exemption from looming tariffs on Australian steel and aluminium exports.
With the Trump administration set to impose 25% tariffs on steel and aluminium imports from March 12, Australia’s government is mounting a concerted effort to protect its $377 million trade in these materials. While former President Trump granted Australia an exemption during his previous term, the White House’s current stance is unclear. Trump has suggested he is open to reconsidering, but senior US trade officials have sent mixed signals.
Chalmers, who is also attending the Australian Superannuation Investment Summit at the Australian Embassy, will use his meeting with Bessent to reinforce Australia’s position as a key economic partner. His argument will hinge on Australia’s $33 billion export relationship with the US, its significant investment in American industries, and its role in critical mineral supply chains.
Beyond trade disputes, Australia is strategically aligning its investment power with US economic interests. This week’s “super showcase” in Washington and New York highlights Australia’s $400 billion investment in US assets—a figure projected to double over the next decade. With the Trump administration rolling out its new ‘America First Investment Policy’, which encourages foreign investment from allies while restricting Chinese capital, Australian superannuation funds see an opportunity to strengthen ties with the US.
The timing of Chalmers’ visit is no coincidence. His discussions with top US financial leaders, including Blackstone CEO Stephen Schwarzman, Citigroup’s Jane Fraser, and an expected meeting with JPMorgan’s Jamie Dimon, stress Australia’s broader push to deepen financial integration with the US.
While Prime Minister Anthony Albanese has already made Australia’s case directly to Trump in what was described as a “constructive and warm” call, the decision on tariffs remains in flux. The Biden administration’s previous approach to trade policy included nuanced exemptions for allies, but Trump’s team, including key economic advisor Peter Navarro, has expressed skepticism. Navarro previously stated that Australia was “killing our aluminum market,” signaling resistance within Trump’s trade circle.
Chalmers is tempering expectations, acknowledging that he does not expect to secure a final resolution on tariffs during his visit. “Trade and tariffs will be part of the conversation but not the whole conversation,” he said ahead of the meeting. “These are ongoing discussions.”
A failure to secure an exemption could disrupt Australian industries that rely on US markets, potentially impacting jobs and investment decisions. However, Australia’s deep economic ties with the US—particularly through superannuation investment and critical minerals partnerships—provide a strong foundation for negotiation.
If the Trump administration prioritizes strengthening trade with allies while cracking down on adversarial investments, Australia may find a pathway to an exemption. For now, the diplomatic and economic maneuvering continues, with the coming weeks set to determine whether Australian steel and aluminium exports will be spared from Trump’s latest tariff regime.