The White House has confirmed it would not offer Australia an exemption from the 25 per cent levies on steel and aluminium imports hours before they were set to take effect on Wednesday afternoon.
While many have raised concerns about the impact this could have on the economy, United States Studies Centre research director Jared Mondschein warns there are other areas of greater concern.
"I don't think these (tariffs) are the most economically consequential, but they're definitely politically so," he told AAP.
Australia sends about $800 million worth of steel and aluminium to the US every year, but this only represents about 0.2 per cent of the total value of Australia's exports.
On the other hand, Australia has been in a security treaty with the US for more than 70 years, the two countries have maintained a free trade agreement for 20 years, both are part of the Five Eyes intelligence alliance, and they have fought side-by-side in every major war for the past century, Mr Mondschein said.
"In the United States, you can't find a closer or more relevant ally in this era than Australia," he said.
The government is disappointed in the US decision but Prime Minister Anthony Albanese will continue to press Australia's case.
"Such a decision by the Trump administration is entirely unjustified," he told reporters in Sydney.
"This is against the spirit of our two nations' enduring friendship.
"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 has ruled out this option to avoid adding to Australians' cost of living.
The levies on steel and aluminium sent to the US by all of its trading partners - "with no exceptions or exemptions" - took effect from 3pm Wednesday AEDT.
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.
Members of Mr Trump's second administration have been more resistant to exemptions in a bid to reap the full benefits of the trade measures, but the president could change his mind.
"He has a higher pain threshold than almost any other president in history, but in the short-term," Mr Mondschein said.
"In the medium or long-term, we've seen him change tack when things are not working to his favour.
"This is a short-term frustration and irritant to the US-Australia relationship."
The coalition maintains the prime minister should have travelled to the US to advocate in person on Australia's behalf, like other leaders, even though no country has been granted an exemption.
"This is a bad day for Australia," Opposition Leader Peter Dutton told reporters.
In the meantime, Mr Mondschein believes Australia could work with other allies like Japan to provide economic stability and business certainty in the region, as attempts to predict the US president "is a fool's errand".
Australian steel producer BlueScope said it was disappointed by the US decision and was working with trade and diplomatic staff in 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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