By Kirsty Needham and Renju Jose

SYDNEY (Reuters) - Australia's trade minister said its steel and aluminium exports to the U.S. create "good paying American jobs" and are key to shared defence interests, as Canberra presses Washington for an exemption to President Donald Trump's planned tariffs.

Trump said on Sunday he will introduce new 25% tariffs on all steel and aluminium imports into the U.S., on top of existing metals duties, in another major escalation of his trade policy overhaul.

Trade Minister Don Farrell said on Monday that Australia, a key U.S. security ally in the Indo-Pacific, was making the case for "free and fair trade, including access into the U.S. market for Australian steel and aluminium" in meetings with the Trump administration.

"Australian steel and aluminium is creating thousands of good paying American jobs, and are key for our shared defence interests," he said in a statement.

Farrell is yet to meet with his U.S. counterpart who has not been confirmed in the role, but Australian officials have been making representations on aluminium and steel exports for several months, seeking to secure a similar exemption from tariffs it won during the previous Trump presidency in 2018.

Australia shipped about $237 million worth of steel and iron products to the U.S. in 2023, and $275 million worth of aluminium in 2024, according to the United Nations Comtrade database.

Prime Minister Anthony Albanese told national parliament on Monday he was scheduled to talk with Trump and would raise the matter.

"We will continue to make the case to the United States for Australia to be given an exemption to any steel and aluminium tariffs," he said in parliament.

Defence Minister Richard Marles met his U.S. counterpart Pete Hegseth in Washington on Friday, with Australia making its first $500 million payment to boost production in the U.S. submarine industry under the AUKUS defence project that will see Australia buy several U.S. nuclear-powered submarines and also build submarines.

Australian processed steel was purchased by the largest U.S. military shipbuilder as AUKUS partners Australia, Britain and the U.S. seek to integrate defence supply chains, the Australian government said last year.

Shares in Australian-listed BlueScope Steel (OTC: BLSFY ) rose nearly 2% on expectations its U.S. business would gain from the tariffs. It operates the North Star Mill in Ohio and employs around 4,000 people in the United States.