Donald Trump's 25 per cent tariffs on all steel and aluminium imports will come into effect on March 12, leaving Australia one month to convince US counterparts to grant the nation's exporters an exemption.
While the South Coast Labour Council wants Australia to do all it can to avoid the tariffs, secretary Arthur Rorris says the government needs to fundamentally shift its approach to trade.
"Trump is essentially throwing out the international rule book on trade," he told AAP.
"Kowtowing to President Trump is what we would consider a short-term fix, a band-aid.
"We don't need a band-aid, we need to face the reality the world has changed."
Mr Rorris's union includes workers from Australia's largest manufacturer and supplier of flat steel - BlueScope's Port Kembla Steelworks.
For many, the current situation echoes a 2015 steel crisis that almost led to the manufacturer's closure, risking thousands of jobs.
"I'm not suggesting we're about to lose our steel industry now," Mr Rorris said.
But if nothing changes and companies consider moving to the US due to certainty of demand and shareholder interests, the union leader said "that is not something we can afford to ignore".
"The steel industry is a massive part of the regional economy, but also a foundational industry for our national economy," he said.
The dumping of cheap Chinese-produced steel on the domestic market, also a concern during the 2015 crisis, would be one of the biggest consequences of the tariffs as it could undermine Australia's ability to sell its own product at realistic market prices.
Mr Rorris called on the federal government to introduce tougher anti-dumping provisions and ensure domestically produced steel was used within Australia.
"The Australian taxpayer is the biggest market for steel - not any private corporation or trading deal with any other country," Mr Rorris said.
"If you look at our needs as a nation there is more than enough there to keep our steelworks going."
Benchmark prices and other measures can also be introduced to prevent price gouging.
Though these proposals have historically been unpopular among Australian governments - which generally prefer options that promote free trade - the US has taken a similar approach for years.
"It's time our government also acts in our national interests and puts Australian workers first," Mr Rorris said.
After a phone call with Prime Minister Anthony Albanese, Mr Trump said he would give Australia's case for an exemption "great consideration", adding it was one of the few nations with which the US had a trade surplus.
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