The US had considered offering an exemption to Australia, but ultimately decided against it shortly before the 25 per cent levies on steel and aluminium imports are set to take effect.
While the federal government is disappointed, it has refused to give up and will continue to press its case.
"Such a decision by the Trump administration is entirely unjustified," Prime Minister Anthony Albanese told reporters in Sydney.
"This is against the spirit of our two nations enduring friendship, and fundamentally at odds with the benefits that our economic partnership has delivered over more than 70 years."
"Friends need to act in a way that reinforces to our respective populations the fact that we are friends - this is not a friendly act."
Other allies, such as Canada, have threatened reciprocal tariffs, but Mr Albanese and Foreign Minister Penny Wong have ruled out this option.
"We're not supportive of putting tariffs on American goods in retaliation ... we're not going to add to Australians cost of living," she told Sky News.
Politicians argue the consequences of the tariffs will hit American consumers.
"Tariffs and escalating trade tensions are a form of economic self-harm and a recipe for slower growth and higher inflation," Mr Albanese said.
The levies on steel and aluminium sent to the US by all of its trading partners - "with no exceptions or exemptions" - are scheduled to take effect from 3pm Wednesday AEDT, the White House says.
Earlier, White House spokeswoman Karoline Leavitt told Australian media in Washington the hoped-for exemption was off the table.
"(Mr Trump) considered it and considered against it. There will be no exemptions," she told the outlets, including the ABC.
"American-first steel. And if they want to be exempted, they should consider moving steel manufacturing here."
Australia's reprieve hopes hinge on a historical precedent.
Mr Albanese noted the previous federal government led by Liberal prime minister Malcolm Turnbull took months to get a tariff exemption during Mr Trump's first term.
Australia has echoed Mr Turnbull's justification by arguing it sends more goods to the US than the other way round, and the nation's $800 million worth of steel and aluminium exports to America each year underpins US jobs.
But members of Mr Trump's administration have been more resistant to exemptions in a bid to reap the full benefits of the trade measures.
"I will continue to act in Australia's national interests and I'll continue to talk up the products and resources that we have for the world," Mr Albanese said.
The coalition maintains the prime minister should have travelled to the US to advocate in person on Australia's behalf, like other leaders from Japan and India.
"This government just hasn't done enough," Deputy Opposition Leader Sussan Ley told Sky News.
But Japan's trade minister on Tuesday confirmed he'd failed to secure an assurance on an exemption.
Former US ambassador to Australia, Jeff Bleich, said Australia's leaders did "everything they could".
"It was significant enough that the United States kept open that possibility until the very last minute," he told ABC Radio.
Australian steel producer BlueScope said it was disappointed by the US decision and was working with trade and diplomatic staff in Canberra and Washington DC.
The Australian Chamber of Commerce has warned the imposition of tariffs will hurt steel and aluminium exporters, while the Business Council of Australia has urged Australia to adopt a "cool-headed response".
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