Trade Minister Don Farrell: Australia’s aluminium exports done with US approval

Australia has responded to the trade statement revolving around the country’s aluminium export. The nation’s trade minister, Don Farrell, proclaimed on February 13 that Australia’s surge in its aluminium supply to the United States, with Washington’s complete acknowledgement and approval, while addressing a hurdle to Canberra’s request for an exemption from US tariffs on aluminium and steel. However, this move has not been without controversy.

Image Source: https://www.trademinister.gov.au/

Earlier this week, United States President Donald Trump stated he would consider an exemption for Australia from a 25 per cent tariff on steel and aluminium imports. Yet, one of his closest advisers soon after claimed that Australia was “killing our aluminium market”. The aluminium import from Australia to the US was 103 per cent higher in 2024 than the average volume from 2015 to 2017.

The United States witnessed a vigorous surge in the import of aluminium from Australia seen between 2018 and 2024. In 2018, the US imported aluminium worth USD 319 million from Australia, which saw a significant surge in 2019 to USD 570.53 million, coinciding with an increase in volume from 134,782 tonnes to 268,577 tonnes. This spike marked the highest volume of aluminium imports during the period.

However, the following year experienced a sharp decline owing mostly to the COVID-19 pandemic, with the value plummeting to USD 168 million and the volume dropping to 87,081 tonnes. The trend slightly recovered in 2021 with the pandemic’s effect still in place, where imports valued at USD 318 million and quantity measuring 116,629 tonnes.

The year 2022 emerged as a standout, as US aluminium imports from Australia reached an impressive USD 692.04 million and 207,711 tonnes. Although 2023 saw a minute decline to USD 569 million in value and 210,192 tonnes in volume, it remained relatively strong compared to pre-pandemic levels.

Rejecting all allegations, Farrell argues that imposing tariffs on a country with a trade deficit “doesn’t make any sense”. He denied the Trump administration’s claims that Australia had breached a verbal agreement to limit its aluminium exports, pointing out that the increased supply had been done with the full knowledge and approval of the previous Biden administration.

Farrell explained that the rise in Australian aluminium exports was in response to supply disruptions from Russia amid its ongoing war with Ukraine. “All of that was done with the full knowledge of the American government. We haven’t done - at any stage - anything that the American government has not been comfortable with,” he told the ABC.

The centre-left Labor government of Prime Minister Anthony Albanese is facing a national election by May and has unveiled an AUD 2 billion (USD 1.26 billion) plan to help aluminium smelters transition to renewable electricity. This initiative aims to safeguard up to 75,000 direct and indirect jobs in the industry.

As the world’s sixth-largest aluminium producer, Australia accounted for 1 per cent of steel imports and 2 per cent of aluminium imports into the United States.