Australian Foreign Affairs Minister Julie Bishop says she expects US President Donald Trump to move ahead with his plan to slap steep tariffs on steel and aluminium imports into America.
Ms Bishop says Australia will ask the White House to exempt it from the tariffs and encouraged the US to resolve trade disputes through the World Trade Organisation.
"I have no expectation the administration will change the decision on steel and aluminium," said Ms Bishop, at an Asia Society event in New York on Wednesday hosted by former Australian prime minister Kevin Rudd.
"There are, I understand, provisions available through the commerce secretary to seek exemptions on a company basis, not on a country basis.
"Whilst we will continue to advocate the US not go down this path, I have no expectation the administration will change its decision."
Ms Bishop said retaliating against the US with tariffs was a no-win path and she said Australia would look at, but likely would not support, another nation filing a dispute in the WTO against the US because "we are strong and close and deep supporters of the United States".
The White House softened its approach on Wednesday and said Canada and Mexico, and possibly other countries, may be exempted from import tariffs on steel and aluminium.
"We expect that the president will sign something by the end of the week and there are potential carve-outs for Mexico and Canada based on national security, and possibly other countries as well based on that process," White House spokeswoman Sarah Huckabee Sanders told reporters.
Ms Bishop said Australia would seek exemptions.
"If that is not able to be achieved, we will certainly encourage the US to go down the WTO path," Ms Bishop said.
"If other countries were to take action against the US it would be very much on the circumstances of course.
"Our exports into the US are minuscule compared to others so it doesn't immediately spring to our mind it would be in our national interests to do so."
Ms Bishop said Australia had lost one of its "conduits" in the White House after Mr Trump's top economic adviser, Gary Cohn, resigned over the tariff issue on Tuesday.
She also issued a strong warning of the potential outcome of tariffs.
"If the current dispute widens and action leads to counter action we might see a downward spiral that could put at risk the open trading environment and that would harm us all," Ms Bishop said.
