The Australian government has begun urgently lobbying the Trump administration for an exemption to steel and aluminium import tariffs amid fears it could lead to local job losses - and potentially a recession.
US President Donald Trump has confirmed he will sign off on the tariffs, with China the main target.
But US allies including Australia and Canada appear likely to be punished too, as Mr Trump moves to protect America's steel and aluminium producers.
Mr Trump told reporters on Thursday a 25 per cent tariff will be slapped on steel imports, and 10 per cent on aluminium.
He met with the executives of America's major steel and aluminium producers at the White House before making the announcement.
Federal Trade Minister Steve Ciobo labelled the decision, which comes a week after Prime Minister Malcolm Turnbull raised the issue with the president in Washington DC, "disappointing".
"The imposition of a tariff like this will do nothing other than distort trade and ultimately, we believe, will lead to a loss of jobs," he told reporters in Sydney on Friday.
The government is concerned retaliatory measures by other major economies could trigger a slowdown in the global economy.
"That is in no one's interest," Mr Ciobo said.
"If we see a breakout of action and reaction from major economies, the only thing that will arise from that will be a slowdown in economic growth and over time, if it got bad enough, we could see for example a recession - and we know the consequent impact of that."
Roughly $274 million of Australian steel and $276 million of aluminium exports to the US could be at risk, the minister warned.
Australia's ambassador to the US, Joe Hockey, is seeking clarification on the announcement while Mr Ciobo has requested a meeting with his US counterpart to work through the details.
He said the government would continue to "pursue Australia's interest" during the meetings after the prime minister pushed Mr Trump for exemptions to potential tariffs at last year's G20 meeting.
Mr Trump said China had benefited from the World Trade Organisation, while US steel and aluminium businesses have been destroyed by the dumping of cheap products in the US.
"What has been allowed to go on for decades is disgraceful," Mr Trump said.
