Treasurer Jim Chalmers in Washington DC on charm offensive in bid to avoid US tariffs

Treasurer Jim Chalmers has used the first day of his charm offensive in Washington DC to highlight Australia’s financial contribution to the US economy, as he attempts to gain a carve-out from US tariffs.

Mr Chalmers attended the first day of the Australian Superannuation Investment Summit, held at the embassy, and used the event to speak with private equity tycoon Stephen Schwarzman, founder of US-based asset manager Blackstone, and Citigroup chief executive Jane Fraser. He will also meet with JP Morgan CEO Jamie Dimon.

“This landmark super summit is all about stronger returns for Australians from stronger economic ties with the Americans,” Mr Chalmers said.

The conversations are taking place ahead of critical meetings with US Treasury Secretary Scott Bessent and Donald Trump’s chief economic adviser Kevin Hassett.

In that meeting, Mr Chalmers will try to negotiate a carve-out for Australia from the US administration’s 25 per cent tariff on steel and aluminium, as well as the sweeping “Fair and Reciprocal Plan,” which could impose levies on foreign imports, potentially covering everything from government subsidies to the GST.

Australia is also facing repercussions for its Media Bargaining Code, which requires US tech firms to pay for using content from publishers, as well as its social media ban for people under sixteen.

In a memo written three days ago, Mr Trump accused foreign governments of costing US tech firms billions of dollars with policies “designed to plunder American companies.”

Mr Chalmers said he had “lots to discuss” with his US counterparts but he wouldn’t “pre-empt the talks on steel and aluminium, except to say they are ongoing discussions and I don’t expect to conclude them while I’m there.”

He said that trade and tariffs will be part of the discussion, “but not the whole conversation.”

The super summit, organised by Ambassador Kevin Rudd and New York Consul General Heather Ridout, was initially intended to connect super funds with leading figures from the US investment community but has since evolved into a public relations exercise to promote Australia as a source of capital to Mr Trump.

Australia’s super system represents the fifth-largest pool of capital in the world.

Michael Feller, a former diplomat and chief strategist at advisory firm Geopolitical Strategy, says Mr Chalmers should position Australia’s super system as equivalent to the sovereign wealth funds of countries like Saudi Arabia.

Recently, Saudi ruler Mohammed Bin Salman offered to invest $US600 billion in trade and investment deals over four years and has become one of Mr Trump’s key intermediaries in potential peace talks between the US and Russia.

Mr Trump likes big-dollar announcements, such as the $US500 billion pledged to developing AI funded by Japan’s SoftBank and a United Arab Emirates sovereign fund, to advertise what his administration is doing to Make America Great Again.

Mr Feller said Australia could adopt a similar strategy.

“Americans won’t understand or be interested in the intricacies of the Australian superannuation system, so all you need to do is highlight the net assets of these funds, and it will be assumed they function as an Australian sovereign fund,” he said.

“That gives you a lot more weight to throw around in these often very performative and media-directed negotiations.”

He said Australia should look to Mr Trump’s favourite sport of televised wrestling, where “there’s a lot of theatre and if you’re prepared to play in that theatre, you can do quite well”.

“You need to have an announcement like ‘we’re gonna sign an MOU to explore opportunities.’ That gives the administration a good news story and allows you to be more favourably looked upon,” Mr Feller said.

“Japan or South Korea go with these business delegations, and they make very vague but enticing semi-commitments. We don’t do that much in Australia — we’re a bit too honest for our own good.”

Mr Chalmers will also be hoping that conversations with top financial executives will help deepen ties to the White House.

Mr Schwarzman, with a net worth of $US47 billion, was a close confidant of Donald Trump during his first administration and donated again to Mr Trump’s most recent campaign. However, his influence likely waned after he called for a new Republican leadership to emerge following the January 6 riots.

Jamie Dimon, the chief executive of America’s biggest bank, had originally been against tariffs, calling them a “threat to the economy,” but had changed his tune recently, telling critics to “get over it.”

Jenny Gordon, a former Department of Foreign Affairs and Trade chief economist and Lowy Institute fellow, was not optimistic about Australia’s prospects for getting a carve-out on aluminium and steel. She said that even though Australia’s exports are small, they would still be considered a national security risk.

A call from Prime Minister Anthony Albanese to Mr Trump on 11 February had raised hopes that Australia would be exempted from tariffs. However, the administration issued a communique the following day stating that there would be “no exemptions” for any country.

“My guess is the meeting on steel tariffs won’t make a difference,” Dr Gordon said. “It will all be negotiating coin for what the US tech firms want with regards to Australian regulations.”