WHAT HAPPENS NOW WITH US TARIFF DECISION:
* Donald Trump has left open the door for a deal with Australia by stating: "We have a very close relationship with Australia. We have a trade surplus with Australia. Great country. Long-term partner. We will be doing something with them."
* An official White House statement says: "The President welcomes any country with which we have a security relationship to discuss alternative ways to address our concerns, including our concerns about global excess capacity. He has left open an avenue for potentially modifying or removing a tariff under certain conditions for individual countries."
* Australian political leaders, officials and business chiefs will seek a specific exemption for Australian steel and aluminium.
* United States Trade Representative Robert Lighthizer will lead negotiations with countries seeking exemptions.
* There's a strong case for an exemption as there is a huge trade difference. Australia exports about $12 billion of goods to the US, while $30 billion comes into Australia from the US.
* As well, only about $500 million of Australian steel and aluminium goes into the US each year (out of $22 billion of steel imported by the US) and all of it supports American manufacturing jobs.
* The broader issue is whether the decision triggers a global trade war, depending on how China and Europe respond.
* China's Vice Foreign Minister says his country will "not sit idly by", but does not want a trade war.
* Treasurer Scott Morrison says everyone should "keep a cool head".
* The United Nations fears poorer countries trying to become commodity exporters will be hard hit and big global corporations will take over smaller vulnerable players, reducing competition.
