Updated ,first published
US President Donald Trump will consider Australia’s request for a full exemption from a new and controversial charge on Australian goods, after he and Prime Minister Anthony Albanese discussed economic policy and the future of the AUKUS pact in a “very warm and productive” phone call on Thursday night.
The Trump administration’s 12.5 per cent tariff on Australia and a slew of other countries was applied for allegedly failing to take action to prevent slavery, a move Australian officials insist is unjustified.
Albanese told reporters at Parliament House on Friday that he raised the issue of tariffs with his US counterpart and that Trump agreed to “give consideration” to his request for a full tariff exemption or – at the very least – no increase to the existing 10 per cent rate.
“I informed him about our record when it comes to dealing with issues such as modern slavery, the strengthening that we have put forward … [to] hold companies accountable for the supply chain process,” Albanese said.
“We have a different position when it comes to tariffs. But I did ask that Australia’s position as a friend of the United States be considered, and the president agreed that he would give consideration to my request.”
Albanese hinted at further meetings with Trump in which tariffs could be negotiated, flagging two visits to the United States before the end of the year.
Fifty-four countries including China, Vietnam, Japan, the United Kingdom and New Zealand have been hit by the same 12.5 per cent tariff.
Six economies – Canada, the European Union, Ecuador, Indonesia, Mexico and Pakistan – were hit with a lower 10 per cent tariff because an investigation by US Trade Representative Jamieson Greer found they were the only countries that had “not failed to impose a forced labour import prohibition”.
Albanese confirmed the two leaders used the phone call to discuss the AUKUS pact, following a briefing on Thursday from Pentagon official Elbridge Colby, a former pact sceptic, who said he was pleased with progress on the deal.
“We reviewed the significant progress that has been made under AUKUS, which remains full steam ahead. We agreed it was a project that is and will continue to deliver benefits for the United States, for Australia, and for the United Kingdom,” Albanese said.
“We discussed the progress on pillar two of AUKUS, where we have agreed our first signature project focused on joint development of cutting-edge payloads and enabling systems for uncrewed undersea vehicles.”
Trump signed a presidential memorandum overnight on bolstering US Navy and shipbuilding capabilities, which included a provision for the establishment of a fifth public navy yard. The new development is directly linked to a plan to increase nuclear-powered submarine capability, a signal that could bode well for the provision of vessels to Australia.
The prime minister also used the call to advocate for an end to the war in the Middle East, saying he had received an “extensive update” from Trump on the state of play that would largely remain confidential.
“It is having an impact on Australia and indeed on the global economy. The president expressed his confidence going forward,” Albanese said.
Shortly after Albanese spoke, US Treasury Secretary Scott Bessent said the Trump administration would apply measures that have “never been seen” on Iran.
“It will be a combination of economic isolation like the world has never seen before, and the continued blockade in the Strait of Hormuz that will keep anything from going in or out of the Iranian ports,” Bessent said in an interview with American media.
Albanese described the phone call as “very warm and productive” and said the pair discussed artificial intelligence, critical minerals and Australia’s recent deals in the Pacific.
Nick Newling is a federal politics reporter for The Sydney Morning Herald and The Age.Connect via X or email.
Emily Kaine is a national news blogger at The Sydney Morning Herald.Connect via email.From our partners
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