The federal government believes “it still has time” to convince the US not to impose tariffs on steel and aluminium, despite a ‘no deal’ stance in the Whitehouse.

Whitehouse spokeswoman Karoline Leavitt has told Australian media in Washington the hoped-for exemption for from the 25 per cent levy was off the table.

“He considered it and considered against it. There will be no exemptions,” she told the outlets, including the ABC, in reports widely published on Wednesday.

“American-first steel. And if they want to be exempted, they should consider moving steel manufacturing here.”

The tariffs, which affect all steel and aluminium imports into the US, are due to take effect from Thursday Australian time.

While the statement dented Australian hopes for an exemption on Wednesday, Labor minister Clare O’Neil believes there’s still time.

“We’re still in a discussion with the US government about this,” she told Seven television.

“So I’m not going to accept this as the situation yet. 

“We still have a little bit of time and lots of discussions (are) continuing to happen.”

On Tuesday, ex-Liberal prime minister Malcolm Turnbull warned the chance of an exemption – like the one Australia enjoyed in Mr Trump’s first term as president – was low because the administration had regrets over concessions granted in its first term.

Australia had argued it should get an exemption because it imports more from the US than it exports – the same successful argument Mr Turnbull used when he was prime minister during Mr Trump’s previous tenure.

Australia’s former ambassador to the US Arthur Sinodinos also predicted the chance of an exemption this time was low.

“The Americans are very serious about the tariffs – both on revenue grounds and also to encourage more protection of American industry and encourage growth and investment,” Mr Sinodinos told AAP on Tuesday.

Australian Constructors Association chief executive Jon Davies said the looming tariffs meant uncertainty for the sector, after it was hit with material price rises after COVID and the war in Ukraine.

He said costs associated with steel products could rise because of the tariffs, which would impact construction prices.

“Any additional hit to the construction industry at this time will be extremely problematic,” he told AAP on Tuesday.

“It has no contingencies left to weather any significant impacts or downturns.”

This post was originally published on Michael West.