MELBOURNE, Australia, Feb 11, (AP): US President Donald Trump said he agreed to consider a tariff exemption on Australian steel and aluminum imports after a telephone call on Tuesday with Australia’s prime minister. Prime Minister Anthony Albanese argued for an exemption during the call, which was scheduled before Trump announced tariffs on steel and aluminum imports on Monday.

Trump said the United States trade surplus with Australia was one of the reasons he was considering an exemption from the tariffs. "We actually have a surplus," Trump told reporters in the Oval Office about trade with Australia. "It’s one of the only countries which we do. And I told (Albanese) that that’s something that we’ll give great consideration to.”

Trump spoke after he removed exceptions and exemptions from his 2018 tariffs on steel, meaning that all steel imports will be taxed at a minimum of 25%. Trump also hiked his 2018 aluminum tariffs to 25% from 10%. Albanese had told reporters earlier in Canberra he made Australia's case for an exemption, and that both leaders agreed on wording to say publicly, "which is that the ‘US president agreed that an exemption was under consideration in the interests of both of our countries.’”

"They are the words that are agreed. They’re the words that I’ll stick to. And I can say, though, that it was a very positive and constructive discussion,” Albanese added. Australia had an exemption from such tariffs during Trump’s first administration. Australia’s arguments include that the country has run a trade deficit with the US since the mid-20th century and Australian steelmaker BlueScope employs thousands of workers in the US.

Australia has only a minor share of the US markets. Albanese on Tuesday also raised the AUKUS agreement with the USand Britain, struck with former President Joe Biden’s administration, in which Australia will acquire a fleet of submarines powered by US nuclear technology. "Our steel and aluminum are both key inputs for the US-Australia defense industries in both of our countries,” Albanese said.

Australia announced over the weekend it had made the first of six $500 million payments to the US under AUKUS to boost US submarine building capacity. Trump intends to reset US taxes on all imports to match the same levels charged by other countries, all of which comes on top of the 10% tariffs he has already put on China, China’s retaliatory tariffs that started Monday and the U.S. tariffs planned for Canada and Mexico that have been suspended until March 1.