Australia has failed to secure an exemption from US steel and aluminum tariffs despite a lobbying campaign by Prime Minister Anthony Albanese’s government, in a blow to relations between the two longtime allies.

Australia will not impose reciprocal tariffs on the United States, Prime Minister Anthony Albanese said on Wednesday, after President Donald Trump ruled out exemptions or exceptions for all countries on steel and aluminium tariffs.

About $1 billion in annual Australian steel and aluminium exports to the United States will be hit with 25 per cent levies from Wednesday.