ABC News Daily Will Albanese’s call with Trump save us from tariffs?
Feb 11, 2025
In this engaging discussion, economist Susan Stone, the Credit Union SA Chair of Economics at the University of South Australia, offers her insights on trade tensions between the U.S. and Australia. She analyzes Prime Minister Anthony Albanese's call with Donald Trump and the potential exemption from hefty steel and aluminum tariffs. Stone elaborates on the complex trade dynamics, emphasizing Australia's significant imports from the U.S. and the implications of these negotiations for future relations amid looming economic conflicts.
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Trump's Tariff Announcement
- Donald Trump announced a 25% tariff on steel and aluminum imports seemingly off-the-cuff while aboard Air Force One.
- He later signed an executive order, initially ruling out exemptions but suggesting a possible reprieve for Australia.
Trade Surplus Rationale
- Trump's potential exemption for Australia is based on the US having a trade surplus with Australia.
- This means Australia buys more from the US than it sells, unlike countries with which the US has a trade deficit, which upsets Trump.
Albanese's Optimism
- Anthony Albanese had a prearranged call with Trump and expressed optimism about a potential exemption.
- Both leaders agreed on public wording stating the US president is considering an exemption for Australia.