Australian steel is crucial for US Navy submarine construction, particularly for the Virginia-class submarines under the AUKUS defense pact.

The Australian government is actively seeking exemptions from the new 25% tariffs on steel and aluminium imports, recently announced by President Donald Trump.

Trump stated that all steel and aluminium imports into the US will be subject to these tariffs, claiming that 'everybody' will be affected.

In response to the tariffs, Trade Minister Don Farrell is engaged in discussions with US officials, despite the challenges posed by the absence of a confirmed US trade counterpart.

This upcoming conversation will mark Prime Minister Anthony Albanese's first significant discussion with Trump since the latter's election, following a brief congratulatory phone call.

Skepticism surrounds Kevin Rudd's effectiveness as an envoy in these negotiations, as expressed by shadow minister Jane Hume.

Industry representatives are voicing concerns over the tariffs, urging the government to protect Australian producers from potential trade repercussions.

BlueScope, Australia's largest steelmaker, has a substantial presence in the US, employing 4,000 American workers and emphasizing compliance with trade agreements.

Albanese plans to argue that avoiding tariffs aligns with US national interests, as these tariffs ultimately increase costs for American consumers.

Treasurer Jim Chalmers expressed confidence in Australia's ability to navigate the new US policies, amidst potential global trade tensions.

The Labor government's response to the tariffs remains unclear, as Albanese has indicated he will refrain from ongoing commentary until there is a concrete move from the US.

Australia successfully negotiated an exemption from similar tariffs in 2018, setting a precedent the government hopes to replicate now.