The Chamber of Minerals and Energy of Western Australia (CME) expects no direct and immediate impact from US reciprocal tariffs unveiled on April 3, with wide-ranging exemptions in place for commodities produced within the State.
Following detailed analysis of yesterday’s announcement, CME notes exemptions exist for iron ore, gold, LNG, bauxite, alumina and critical minerals including lithium and rare earths.
CME Chief Executive Officer Rebecca Tomkinson said the exemptions highlighted the ongoing significance of minerals and energy produced in WA to the world’s biggest economy.
“These exemptions are recognition that commodities like those we produce cannot simply be conjured out of thin air,” Ms Tomkinson said.
“WA is one of the world’s leading mining jurisdictions and remains well positioned to supply our trading partners – including the US – with minerals and energy central to our daily lives.”
While the WA resources sector appears to have escaped direct US import duties, Ms Tomkinson cautioned the outlook remained uncertain.
“A return to protectionism and import tariffs is a concerning backwards step that threatens to slow global growth,” Ms Tomkinson said.
“Significant tariffs placed on many of WA’s key trading partners – including China, Japan and South Korea – may reduce economic output and result in lower demand for WA’s key commodity exports.
“A broader trade war leading to escalating tariffs could substantially damage an economy as trade- exposed as WA.
“In an increasingly uncertain global environment, Australia must focus on the things we can control.
“The highest priority to ensure the ongoing competitiveness of the WA resources sector must be a laser-like focus on reducing costs.
“That includes speeding up project assessments, rapidly bringing down the price of electricity and implementing harmonious workplace settings that prioritise a return to productivity-driven wages growth.”
Following Prime Minister Anthony Albanese’s proposal to create a Strategic Critical Minerals Reserve in response to US tariffs, CME is working to engage with the Government to ensure the policy delivers positive outcomes for industry.
“It is vital that any intervention improves the economics of WA critical minerals projects rather than placing additional barriers in the path of proponents,” Ms Tomkinson said.
“Western Australia has significant critical minerals deposits and is a major producer of a wide range of the commodities needed to support the energy transition.
“This means WA is extremely well placed to help diversify supply chains for a wide range of goods including wind turbines, batteries, defence and medical equipment.”
Media contacts:
Josh Zimmerman j.zimmerman@cmewa.com / 0404 947 719
Natasha Mutch n.mutch@cmewa.com / 0435 383 382
