Recent developments suggest that exemptions from President Donald Trump’s newly announced 25% tariffs on steel and aluminum imports are increasingly unlikely. On February 10, 2025, President Trump declared these tariffs, set to take effect on March 12, 2025, eliminating numerous exemptions previously granted.
Australia’s prospects for securing an exemption have diminished, particularly after former Australian Prime Minister Malcolm Turnbull criticized President Trump’s approach to international relations and tariffs. Turnbull accused Trump of employing aggressive tactics that harm global alliances and benefit China. In response, Trump labeled Turnbull as “weak and ineffective,” complicating current diplomatic efforts by Australian officials to negotiate a favorable outcome.
Similarly, Canada and Mexico face challenges in obtaining tariff relief. Commerce Secretary Howard Lutnick indicated that the tariffs imposed on these countries could be lifted if they take action to stop the smuggling of fentanyl and address illegal immigration. Despite these conditions, the recent tariffs have already impacted $1.5 trillion worth of goods, causing market disruptions and significant stock market losses.
The European Union is also preparing for potential tariffs, with President Trump suggesting that tariffs on the EU “might happen” unless the trade imbalance is addressed. EU leaders have expressed concerns about a possible trade war and are considering measures to avoid escalating tensions.
Overall, the likelihood of securing exemptions from these tariffs appears slim, as the Trump administration maintains a firm stance on trade policies aimed at addressing various geopolitical concerns.
