Why the US feels threatened by Australian aluminium

US senior counsellor Peter Navarro’s comments that Australia is “killing the aluminium market” is, if anything, an endorsement of Australia’s aluminium industry.

The comment emerged after tariff negotiations between Prime Minister Anthony Albanese and US President Donald Trump took place this week, where Albanese sought an exemption from the US Government’s recently imposed 25 per cent aluminium tariff.

Donald Trump reportedly promised to give Australia “strong consideration” for an exemption, just moments after he said there would be “no exemptions”.

The noise around Australian aluminium is a reflection of the growing global recognition of the country’s influence in the aluminium market.

With decades of investment in refining and production infrastructure, Australia has established itself as a reliable exporter to major markets, including the United States.

While Navarro was bringing attention to a surge in Australian aluminium exports, this growth reflects the industry’s capacity to meet rising global demand rather than an intent to flood any market.

Many in the US believe Australia, when given exemptions in Trump’s first administration, took advantage of avoiding tariffs to significantly increase its aluminium exports to America, which were “approximately 103 per cent higher” in 2024 “than the average volume for 2015 through 2017”.

However, for all the attention Australian aluminium is getting, it only amounts for 10 per cent of what it exports around the globe, with Japan and South Korea moving the bulk of it, according to the ABC.

Australia’s aluminium industry has long been underpinned by a high standard of production, making the country’s products attractive to countries with stringent quality and environmental requirements.

This reputation has helped Australian producers build long-term partnerships across the globe, positioning them as trusted suppliers.

Australia’s aluminium producers are also embracing cutting-edge technologies to reduce carbon emissions and improve energy efficiency.

The development of low-carbon aluminium production methods, such as Rio Tinto’s ELYSIS technology, is placing Australian producers at the forefront of global sustainability trends.

These advancements not only enhance the competitiveness of Australian aluminium but also align with the increasing international emphasis on green supply chains.

Although the US tariffs have created uncertainty, the Federal Government’s diplomatic efforts demonstrated the country’s ability to advocate effectively for its industries.

Historical trade partnerships and alliances with the United States have been critical in mitigating the impact of such tariffs, showcasing Australia’s resilience in navigating complex trade dynamics.

Australia’s ability to adapt to global trade challenges has helped the aluminium sector maintain strong export volumes while diversifying its markets to reduce dependency on any single trade partner.