Australia will make $1 billion in interest-free loans available through National Reconstruction Fund to businesses in response to new trade tariffs imposed by the United States.
Prime Minister Anthony Albanese announced the new “economic resilience program” after the Trump administration imposed a sweeping 10 per cent tariff on all Australian exports to the US.
He said the zero-interest loans would be available for “firms to capitalise on new export opportunities”, building on the loans, equity and guarantees already available through the $15 billion fund.
A “strategic reserve of critical minerals” will also be created, while the government has pledged to “strengthen” the anti-dumping regime to protect the steel, aluminum and manufacturing sectors against “unfair competition”.
On Thursday morning, US President Donald Trump announced a baseline 10 per cent tariff on imports from all foreign countries, as well as higher tariffs for the “worst offenders”, including strategic partners like Japan and South Korea.
During the ‘Liberation Day’ speech, in which Mr Trump singled out Australia’s ban on US beef imports, which has been in place since 2003 due to the threat of mad cow disease, described the tariffs as “reciprocal”.
It follows an earlier decision by the US to impose a 25 per cent tariff on Australian steep and aluminium, leading the Australian government to announced new support for green iron manufacturing.
Responding shortly after the announcement, Mr Albanese questioned the reciprocal nature of the “totally unwarranted” tariffs and said the government would not respond in kind.
“A reciprocal tariff would be zero, not 10 per cent. The administration’s tariffs have no basis in logic, and they go against the basis of our two nations’ partnership. This is not the act of a friend,” he said.
“Today’s decision will add to uncertainty in the global economy, and it will push up cost for America households. It is the American people who will pay the biggest price for these unjustified tariffs.”
Mr Albanese said the government would take immediate action by strengthening the anti-dumping regime to “safeguard key sectors like steel, aluminium and manufacturing against unfair competition”.
He also pledged that the government would buy more Australian products, including steel, appearing to refer to procurement changes last month that provide fresh guidance on retained economic benefit.
“What this means is that Australian businesses will be front of the queue for government procurement and contracts, maximising value for local businesses and the taxpayer,” he said.
The government will also provide $50 million to “secure and grow new markets” for sectors impacted by the tariffs, including through five new business and investment missions to priority markets if reelected.
Mr Albanese also reiterated comments earlier this week that the News Media Bargaining Code is non-negotiable, adding the social media age ban to the mix.
“We have no intention of repealing the world-leading legislation that we passed with overwhelming support that set minimum age for social media at 16. That policy is about what’s best for Australian children and Australian parents.”
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