Trump’s trade adviser says Australia is waging a ‘frontal assault’ on US aluminium markets. What’s really going on?
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Peter Navarro claims aluminium makers in Australia are undermining the US. Are they really?
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Donald Trump’s trade adviser has made several targeted critiques of Australia’s manufacturing industry in comments that may undermine Canberra’s bid to win an exemption from new US steel and aluminium tariffs.

In a  shared by the White House, Peter Navarro wrote that Australia – and Canada – represent frontal assaults on our aluminium markets … – **Peter Navarro**

US aluminium production has been declining for decades, part of a larger pattern of decline in manufacturing across the country.

China is now the dominant manufacturer of metal, while Canada has emerged as the single biggest exporter of aluminium to the US by far. In January more than half of aluminium imports into the US came from Canada, according to data from the .

It’s a trend the Trump administration wants to turn around.

Australia has four aluminium smelters that produce the metal for the domestic and international markets. The British-Australian company Rio Tinto and the US-owned Alcoa are the major stakeholders.

Australian aluminium exports into the US accounted for less than 3% of the latter’s total, according to the January data. That’s in line with longer-term averages.

The description of Australia as representing a “frontal assault” on US markets, given its modest market share, has confounded government and industry alike.

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### Is Australia a threat to US aluminium producers?

Australia and Canada represent frontal assaults on our aluminum markets … – **Peter Navarro**

US aluminium production has been declining for decades, part of a larger pattern of decline in manufacturing across the country.

China is now the dominant manufacturer of metal, while Canada has emerged as the single biggest exporter of aluminium to the US by far. In January more than half of aluminium imports into the US came from Canada, according to data from the International Trade Administration.

But Navarro’s comments are probably not directed at that deal. They are almost certainly concerned with the January announcement of the federal government’s $2bn initiative to provide incentives for aluminium smelters to switch to renewable power.

Navarro’s opinion piece even links to a ,to%20renewable%20power%20before%202036.) about the Albanese government initiative.

The policy is designed to help reduce the largest cost to the smelters – energy – in what is turning into a global race to decarbonise the production of aluminium, as well as steel.

Similar incentives are in place across Europe. The government said the policy was essential to keeping smelters open and operating into the future, providing targeted support for smelters transitioning to renewable energy before 2036.

But given that the incentives are only available from 2028-29, they cannot have allowed subsidised smelters to operate below cost, as claimed.

Guardian Australia could not find any examples of US authorities accusing Australian aluminium producers of dumping the metal, a tactic that would typically be used to get rid of excess production.

Navarro also claims Australia’s ties to China distort global aluminium trade.

As a major exporter of raw materials, Australia has developed a close trade relationship with China, especially when it comes to iron ore, used in steel-making. It also exports alumina, used to make aluminium, although China is not its primary destination.

There’s no evidence of these ties distorting aluminium trade.
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