This article is more than 2 years old

This article is more than 2 years old

The White House says a deal with Australia over steel and aluminium tariffs will be finalised “shortly” as the Turnbull government welcomes Donald Trump’s decision to grant an exemption.

Tariffs of 25% on steel and 10% on aluminium were set to go into effect on Tuesday, but the White House confirmed that an agreement had been reached with South Korea, an in-principle agreement had been reached with Argentina, Australia, and Brazil “the details of which will be finalised shortly” and negotiations would continue with Canada, Mexico, and the European Union “for a final 30 days”.

While the details are not yet in the public domain, the prime minister issued a statement welcoming “confirmation from the president of the United States that Australia will be exempt from its steel and aluminium tariffs”.

“The exemption reflects the fair and reciprocal trade relationship Australia shares with the United States and underpins the unbreakable friendship between our two great nations,” Turnbull said.

Last month the Australian trade minister, Steve Ciobo, insisted Turnbull had “secured an agreement with the US president that Australia will be exempt and that continues to be the case”.

Ciobo said the agreement was for an unconditional exemption, suggesting it was both permanent and would not include quotas.

But Australian officials were left in doubt because the US Customs and Border Protection agency warned that unless a new instrument to implement such an agreement were put in place, the tariffs would apply from 1 May.

Last week the Australian Industry Group said it was hopeful Australia would receive a permanent exemption but “based on past experience” with the US it was bracing for a further 30-day exemption if necessary instruments were not in place.

Ciobo travelled to the US last week to spruik Australian trade and tourism, but a spokesman denied the trip was a last-minute dash to secure the tariff exemption.

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Asked about the steel tariffs on Monday, the treasurer, Scott Morrison, referred questions to Turnbull and Ciobo, but told reporters “we’re all very clear about what was agreed between the prime minister and the president and I have no doubt that those undertakings will be honoured”.

In March Australia received an exemption from the tariffs that protected exports from Australian producers BlueScope Steel and aluminium produced in Canada by Rio Tinto.

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.

In March Turnbull explained that Donald Trump believed trade with the US should be “fair and reciprocal” and “that is the reason why Australia has been exempted from the steel tariffs”.

“Trade between Australia and the US is fair and reciprocal with zero tariffs on US imports into Australia ... And America actually has trade surplus with Australia and we don’t complain about that.”

Ciobo has said it is “hard to imagine” a better deal that could be struck between the US and Australia.