Australia’s Chalmers to Push for Tariff Exemption in US Talks with Treasury Secretary Bessent

Australian Treasurer Jim Chalmers is set to meet with US Treasury Secretary Scott Bessent on Tuesday in Washington, D.C., where Australia’s request for an exemption from planned steel and aluminum tariffs will be a key agenda item, Bloomberg reports.

The meeting comes amidst ongoing discussions surrounding President Donald Trump’s proposed tariffs, which have sparked global concern and prompted Australia, a long-time ally of the US, to seek special consideration.

The day’s schedule begins with a meeting at 7:30 a.m. between Chalmers, Bessent, and US National Economic Council Director Kevin Hassett. Following this, Chalmers and Bessent are scheduled to address a summit at the Australian Embassy, aiming to highlight the lucrative investment opportunities within Australia’s rapidly expanding $2.6 trillion pensions industry.

Ahead of the formal talks, Chalmers has already engaged with prominent US business leaders, including Blackstone CEO Stephen Schwarzman and Citigroup CEO Jane Fraser, on the first day of his visit. A meeting with JPMorgan’s Jamie Dimon is also anticipated on Tuesday.

While Chalmers acknowledged that the tariff issue will be a significant point of discussion, he downplayed expectations of an immediate resolution.

“Tariffs will be part of the conversation but not the whole conversation,” Chalmers said in a statement. He emphasized that the broader Australia-US economic relationship, particularly concerning critical minerals, would also be explored.

Australia is strategically leveraging its robust and expanding pension industry to showcase its investment commitment to the US, aligning with Trump’s “America First” policy. Currently, Australian pension funds hold around $400 billion in US assets, a figure projected to double in the next decade.

Australia’s efforts to cultivate relationships with the Trump administration began even before the 2024 election. However, these efforts have intensified in recent weeks following Trump’s announcement of the planned 25% duties on steel and aluminum imports.

President Trump assured Prime Minister Anthony Albanese during a recent telephone conversation that he would consider Australia’s request for an exemption. However, senior US trade advisor Peter Navarro previously expressed his opposition, stating to CNN that “Australia is just killing our aluminum market.”