US President Donald Trump and Australian Prime Minister Malcolm Turnbull had both tweeted on March 9 that the US will not impose import tariffs on Australian aluminium and steel.
Australia joins Canada and Mexico as the countries so far exempted from import taxes of 10% for aluminium and 25% for steel that the US will impose after Trump signed off on the tariffs on March 8.
Australia’s exemption could see Australian aluminium producers diverting production to the US from Asia should US aluminium premiums continue to rise, some sources said.
“The US is not a traditional destination for Australian metal but [Australian producers] will target the US market if premiums are better there. This might mean that Asia could have a shortage of good western material,” a Singapore-based trader said.
American Metal Market assessed the US P1020 spot premium at 16.5-17.5 cents per lb on Tuesday,...