Albanese government under pressure over lack of Trump meeting as deadline on tariff exemption looms

Sky News AU

a day ago

The Trump administration has extended its tariff freeze by three weeks, but pressure is mounting in Canberra amid fears Australia could still be targeted in Washington's sweeping trade reset.
US Treasury Secretary Scott Bessent confirmed on Sunday that the next phase of Donald Trump's 'reciprocal tariffs' will kick in on August 1, with dozens of countries facing a sharp increase unless they secure deals with the United States before then.
Australia's tariff inclusion, which is currently subject to a 10 per cent blanket tariff and select duties on steel and aluminium, is raising alarm in both government and opposition ranks.
'We don't know yet (if Australia will receive a letter), that will be announced this week, but Australia is opposed to the reciprocal tariffs that have been foreshadowed for our nation,' Assistant Foreign Affairs and Trade Minister Matt Thistlethwaite told Sky News.
'There has been a pause on them, and that pause ends this week. We've said that this is not the actions of a friend.'
The Albanese government has desperately attempted to gain an exemption from the basline tariffs but to no avail.
'When negotiating we're going to try to have those tariffs removed, but our expectation is that they will remain,' Mr Thistlethwaite said.
'Australia has fared better than any other nation in the world. There's no nation that has done better than Australia, we've got the minimum level at 10 per cent, we're hopeful that will be removed and we're negotiating that.'
Liberal Senator Maria Kovacic, however, blamed a lack of engagement from the Prime Minister, warning that Australia's favourable position was not guaranteed.
'We don't know what we're getting because the Prime Minister hasn't had the conversations with the US President, and it is a big problem to assume we're just going to get the 10 per cent and not get a letter. That's not good enough,' she said.
'The Opposition has been encouraging the government and supporting the government to actually have constructive conversations with the US President, and for some reason, it's been 45 days since his election, and there's been no conversation between Anthony Albanese and Donald Trump.'
'I think it's vindication that the existing relationship has assured that we're protected from any high tariffs but don't for a moment assume that it's from any effort from this government because it's clear, and everyone can see that there's something wrong with that relationship.'
Mr Albanese repeated his government's line last weekend, saying that the US tariffs were 'an act of economic self-harm' and that he would continue to make the case for an Australian exemption.
'We continue to be engaged with our American friends, but they have a different position on tariffs,' he said.
'If you look at what the impact has been so far, our beef exports are up, our exports in a range of other products are up as well. Lamb's down a little bit, steel and aluminium have been impacted, but not hugely.
'We are in a position where on July 9, that won't really have an impact on us because that's about other countries who have higher rates overnight.'
Back in Washington, the Treasury Secretary warned that any nation not already in an advanced stage of negotiations could expect notification of the increased tariffs to arrive shortly.
'President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on August 1, you will boomerang back to your April 2 tariff level,' Mr Bessent told CNN's State of the Union.
'We are saying this is when it's happening, if you want to speed things up, have at it, if you want to go back to the old rate that's your choice.'
He insisted August 1 was not a new deadline, but simply the implementation date that followed the earlier 90-day pause.
Trump originally unveiled the tariff plan in early April before pressing pause to allow countries time to negotiate.
Bessent revealed that Washington would likely issue around 100 letters - mostly to smaller trading partners already hit with the 10 per cent base rate - unless significant progress was made.
'The playbook is to apply maximum pressure,' he said, pointing to Europe's shift in tone after Trump threatened 50 per cent tariffs last month.
'Three weeks ago, on Friday morning, President Trump threatened 50 per cent tariffs, and, within a few hours, five of the European national leaders had called him and Ursula von der Leyen, the head of the EU, was on the phone, and the EU is making very good progress. They were off to a slow start.'
Trump himself has doubled down on the move, confirming letters will be issued next week.
'They'll start to pay on August 1. The money will start to come into the United States on August 1, in pretty much all cases,' he said on Friday.
Australia has not yet received any such letter, but Thistlethwaite warned that the economic logic of the tariffs remains unclear.
'We've had a trade surplus with the United States, so, it doesn't make sense and ultimately it will be American consumers who will pay more for Australian goods,' he said.
Still, he stressed that of all America's trading partners, 'Australia has done the best and that is a symbol of the strength between the nations.'