US Tariffs: Australia looking for exemption to Trump's duties on metals

World
Europe

Meanwhile, Australia is lobbying hard for an exemption to America's tariffs on aluminium and steel imports, fearing they could prompt other countries to retaliate, and ultimately hurt the local economy. Greg Navarro has more on this now from Sydney.

The head of the Reserve Bank of Australia doesn't make many public speeches, but with several countries facing the prospect of being hit with massive import tariffs from the US. Philip Lowe voiced his concern.

PHILIP LOWE GOVERNOR, RESERVE BANK OF AUSTRALIA "Protectionism is costly. As costly to the country that implements the protectionism and it's costly to everyone else."

Australia's government has lobbied US President Donald Trump for an exemption to his planned 25% tariffs on steel and 10% tariffs on aluminium imports.

STEVE CIOBO AUSTRALIAN MINISTER FOR TRADE, TOURISM & INVESTMENT "The imposition of a tariff like this will do nothing other than distort trade and ultimately we believe will lead to a loss of jobs."

And on Thursday, Trump signalled that Australia's efforts may have paid off.

DONALD TRUMP US PRESIDENT "We have a very close relationship with Australia. We have a trade surplus with Australia -- great country, long-term partner. We'll be doing something with them."

MALCOLM TURNBULL AUSTRALIAN PRIME MINISTER "He acknowledged these important points; firstly, Australia is a strong ally of the United States. It has no better ally than Australia - 100 years of mateship he's recognised. Secondly, whatever complaints the United States may have about other trading relationships, it has no complaints with respect to Australia."

GREG NAVARRO SYDNEY Out of all of the steel and aluminium produced in this country that leaves Australia's shores, only a fraction is exported to the US, about 1% for each.

Economist say the bigger concern is that Trump's tariffs could ignite retaliation from other countries in the form of higher tariffs and slow global economic growth.

PROFESSOR TIM HARCOURT, ECONOMIST UNIVERSITY OF NEW SOUTH WALES "We are a trading nation, we don't have a large domestic market like the US has or like Brazil has so we rely on exports to overseas countries so for us a trade war would be a disaster."

That's why the head of the Reserve Bank of Australia took the opportunity to publicly address the issue.

PHILIP LOWE, GOVERNOR RESERVE BANK OF AUSTRALIA "So the best thing for everyone to do, perhaps even the hardest thing to do, but the best thing to do is just to sit still and do nothing."

And continue to advocate, he said, for an international system based on open trade. Greg Navarro, CGTN, Sydney.