Overview

• The Trump administration imposed 10% blanket tariffs on most Australian imports and 25% duties on steel and aluminium, straining bilateral trade relations.
• Foreign Minister Penny Wong reaffirmed Australia's commitment to prioritizing its national interest in negotiations with the US, acknowledging the need for a different diplomatic approach with President Trump.
• Australia is actively engaged in talks for tariff carve-outs but has not yet secured exemptions, contrasting with the UK's partial tariff relief deal with the US.
• The Albanese government is accelerating efforts to diversify trade, pursuing an EU free trade agreement, a critical minerals deal with India, and exploring domestic policy changes such as scrapping the luxury car tax.
• These developments signal a shift in traditional US-Australia alliance dynamics, with Australia seeking greater trade stability and reduced reliance on the US market.