Australian beef producers have vowed to fight potential US tariffs on agricultural products.
Tariffs of 25 per cent on steel and aluminium have come into effect following Australia’s failure to secure an exemption from the US.
President Donald Trump has also pledged to protect American agriculture, flagging further tariffs on imports.
Cattle Australia chief executive Chris Parker said market access was a fundamental issue.
“Any new initiative that is a barrier to international trade is something that we will vigorously oppose on behalf of Australia’s beef producers,” he said.
“Cattle Australia is extremely concerned by the protectionist comments from the US president regarding potential implementation of tariffs on agricultural products.”
Dr Parker said there was still very limited information available from the US government, which made estimating the potential impact on Australian industry impossible.
“Australia has worked hard to gain market access and negotiate trade agreements around the world, which provides the beef export sector with some resilience – we do not want to see that compromised,” he said.
Australia’s US ambassador Kevin Rudd told ABC’s 7.30 program on Thursday night the second Trump administration has been more nationalist on foreign policy, more protectionist on trade policy, and more transactional in its negotiations.
“We’ve seen that very much reflected in the way in which the administration has approached these tariff negotiations,” he said.
“These are deep seated fundamental changes in this different America, which every one of the 36 countries who negotiated tariff exemptions on steel and aluminium last time round back in 2017, have had to contend with this time round.”
Negotiations focused on the long-standing free-trade partnership with the US, which has a trade surplus with Australia.
“Those arguments at this stage at least, have not prevailed,” he said, vowing not to give up on the difficult negotiations.
“We’re up against an administration which has a very deep-seated view that tariffs are the way of the future,” Dr Rudd said.
Meanwhile, the federal government is encouraging shoppers to buy Australian products.
Labor is also considering local quotas for major projects across the nation amid fears cheap steel could be dumped in Australia.
Australia sends about $800 million worth of steel to the US each year, representing 0.2 per cent of all exports to its close security ally.
Prime Minister Anthony Albanese said the government would continue to argue for the removal of tariffs but ruled out reciprocal trade barriers.
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