Australia Looks to Asian Markets as it Braces Itself for US Tariffs

Canberra Urges Its Steel and Aluminum Exporters to Seek Alternative Markets

- Jonathan Pearlman

SYDNEY - Australia is quietly making contingency plans for the impact of Mr. Donald Trump's steel and aluminum 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 percent tariffs, Australian Trade Minister Don Farrell has encouraged steel and aluminum 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 aluminum each year, or about 10 percent of total Australian exports. The US is the largest export destination of Australian steel and the third-largest of aluminum.

Mr. Farrell was said to have met steel and aluminum producers and trade organizations 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.