During his presidency, Donald Trump imposed a series of tariffs on various imports as part of his “America First” economic policy. One of the most controversial decisions was the imposition of tariffs on steel and aluminum imports in 2018. Under Section 232 of the U.S. Trade Expansion Act, Trump justified the tariffs by citing national security concerns. This move led to a 25% tariff on steel and a 10% tariff on aluminum imports from several countries, including close allies like Australia. Australia maintains a crucial trade relationship with the United States, which ranks as its fifth-largest export destination. However, China dominates Australia's trade landscape, far surpassing all other partners. In the 2023-24 period, Australian exports to China reached A$212.7 billion (£102.2 billion, $133.4 billion).

By contrast, Australian exports to the U.S. totaled $37.5 billion last year, with business services leading at $6.2 billion, followed by intellectual property charges and beef. During the same period, Australia imported $88.2 billion worth of goods and services from the U.S. Australia has long been considered a strategic ally of the United States, maintaining strong military, political, and economic ties. The imposition of tariffs on Australian steel and aluminum was seen as an unfair move that undermined this long-standing relationship. Australian officials argued that their country posed no national security threat to the U.S. and that their exports were vital to American industries.

Furthermore, the tariffs created uncertainty for Australian exporters, forcing companies to seek alternative markets and absorb financial losses. Many in Australia viewed the decision as a betrayal, especially given the country’s continued support for the U.S. in global affairs. The Australian government, led at the time by Prime Minister Malcolm Turnbull, engaged in diplomatic efforts to negotiate exemptions. Australian trade officials repeatedly lobbied Washington to reconsider the decision, emphasizing the negative impact on both economies.

Australia has been subjected to a minimum 10% tariff on all exports to the United States following the announcement of Donald Trump's sweeping new global trade policy. Trump justified the move by citing "trade barriers" such as Australia’s strict biosecurity regulations, specifically pointing to the ban on U.S. beef imports. He referred to the measure as a "reciprocal tariff" aimed at countering these restrictions. Australian Prime Minister Anthony Albanese condemned the decision as "totally unwarranted" but confirmed that Australia would not retaliate with its own tariffs, commonly known as import taxes.