US President Donald Trump says he plans to increase tariffs on foreign steel imports from 25 per cent to 50 per cent amid a deepening trade war.
"We are going to be imposing a 25 per cent increase," he said at a rally in Pennsylvania on Friday local time.
"We're going to bring it from 25 per cent to 50 per cent the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States."
The doubling of steel levies — to take effect on June 4 — could further push up prices for a material used in housing, vehicles, and other goods.
The price of steel products has increased around 16 per cent since Trump became president, according to the US government's producer price index.
'Economic self-harm'
In February, Mr Trump raised steel and aluminium tariffs to a flat 25 per cent "without exceptions or exemptions", in one of his first moves to aid the struggling domestic industries.
The tariffs would apply to millions of tonnes of steel and aluminium imports from Australia, Canada, Brazil, Mexico and other countries that had previously been able to enter the US duty-free.
Australia's trade and tourism minister, Don Farrell, said on Saturday that Australia's position throughout the upheaval has been consistent and clear.
"These tariffs are unjustified and not the act of a friend," Mr Farrell said.
"They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade."
Opposition Trade spokesperson Kevin Hogan was in agreement, labelling the move "really bad policy" that will harm American consumers and global trade.
"We are a great trading nation — just last year we sold $650 billion worth of stuff overseas — so we do not want a global trade war, and that's what lifting tariffs can do if other countries reciprocate," he said.
He said he was pleased Prime Minister Anthony Albanese will likely meet Mr Trump at the G7 in Canada next month, adding that the PM should argue "very forcefully" that the move goes against the spirit of the US-Australia alliance.
US 'not a major market' for Australian steel
Justin Wolfers, an Australian professor of public policy and economics based at the University of Michigan, said the increased tariff rate would affect Australia "remarkably little".
"Australians are still going to be able to sell their steel," Dr Wolfers said.
"Basically, on both the production side and the consumption side, the US is a relatively small player.
"We will sell a little bit less steel to the United States but, as it stands, it's not a major market."
Speaking at Friday's rally, held on the premises of iconic American steelmaker US Steel, Mr Trump said the company would remain American under the terms of a new investment deal proffered by Japan-based firm Nippon.
Though the president had initially vowed to block Nippon's bid for the Pittsburgh-based company, he changed course and announced an agreement last week that would result in what he described as "partial ownership" by Nippon.
It is unclear if the deal his administration helped broker has been finalised, or how the firm's ownership will be structured, as few details have been made public.
But Mr Trump stressed the deal would maintain American control of the storied company, which is seen as both a political symbol and an important part of the country's supply chain, supporting industries like auto manufacturing and national defence.
Giant American flags hung from the ceiling, and a sign read: "The Golden Age".
Trump farewells black-eyed Musk
The announcement on steel tariffs came on the same day Mr Trump bid farewell to Elon Musk in the Oval Office, providing a cordial conclusion to a tumultuous tenure for the billionaire entrepreneur.
Mr Musk is leaving his position spearheading the Department of Government Efficiency, and will be rededicating himself to running his businesses, including Tesla, rocket company SpaceX, and social media platform X.
Mr Trump credited Mr Musk with "a colossal change in the old ways of doing business in Washington", and said some of his staff would remain in the administration.
Mr Musk, who wore all black including a T-shirt that said "The Dogefather", was also sporting a black eye, which he said came from "horsing around" with his young son.
"I said, 'Go ahead, punch me in the face,'" he said. "And he did."
The president said Mr Musk had led the "most sweeping and consequential government reform effort in generations".
He also suggested that Mr Musk is "really not leaving" and "he's going to be back and forth" to keep tabs on what's happening in the administration.
ABC/wires
