This article is more than 2 years old

This article is more than 2 years old

Australia’s exemptions from US steel and aluminium tariffs are both permanent and unconditional, the government has said as it denied reports that the deal is subject to quotas.

The White House confirmed this week it had reached an in-principle agreement to exempt Australia, Argentina and Brazil from the 25% levy on the imports.

But the Wall Street Journal reported on Wednesday that unnamed senior Trump administration officials said while the details have not been finalised, Australia, Argentina and Brazil have agreed to quotas.

“In all of these negotiations, the administration is focused on quotas that will restrain imports, prevent trans-shipment and protect the national security,” the White House was quoted as saying

Australia steel tariff deal will be finalised 'shortly', White House says Read more

A Turnbull government official denied the report and told Guardian Australia there would be no quotas on the tariff exemptions.



The government’s understanding was still that expressed by the trade minister, Steve Ciobo, in April that Australia had secured an unconditional and permanent exemption.

Quotas are designed to prevent countries that have negotiated exemptions importing steel from China then on-selling it to the US.

In two presidential proclamations on Monday, Donald Trump said the appropriate way to deal with Australia, Argentina and Brazil was “to extend the temporary exemption” from the proclaimed tariffs “in order to finalise the details” of the in-principle deals.

Trump’s proclamations said those discussions would be “most productive” if the three countries remained exempt from the tariffs and because of the in-principle agreement “it is unnecessary to set an expiration date for the exemptions”.

“Nevertheless, if the satisfactory alternative means are not finalised shortly, I will consider reimposing the tariff,” the proclamations said.

On Tuesday Malcolm Turnbull issued a statement welcoming “confirmation from the president of the United States that Australia will be exempt from its steel and aluminium tariffs”.



The US accounts for about 0.8% of Australia’s steel exports and about 1.5% of aluminium exports. Australian steel exports to the US are worth roughly $US210m a year while aluminium exports are worth about $US213m a year.