Australian officials have been working to carve out an exemption from the US president's 25 per cent tariffs on steel and aluminium imports, due to take effect in March.
Australia was granted an exemption from similar tariffs during Mr Trump's first term in office, which led to a boost in steel imports from Asian countries, the Australia Steel Association says.
A reprieve for Australia would lead other major economies, particularly in Asia, to send steel to Australia instead, lowering domestic prices, the association's chief executive David Buchanan said.
Sectors such as housing could benefit from lowered costs and greater imports.
"We may see some improvements of the price of steel coming this way, and that's good for construction and manufacturing in Australia, which we know is under pressure," Mr Buchanan told AAP.
"If Japan, Korea and Vietnam have issues exporting to the US, they may focus back towards Australia and we may see increased attention from those countries."
Overseas markets had increased their focus on Australia while the tariffs introduced during Mr Trump's first term were in place, Mr Buchanan said.
While a similar scenario could unfold with the latest tariffs, he said global markets had changed dramatically since 2018.
"China now is not as dependent on steel exports to the US and have found other markets," he said.
"The dynamics are going to be different this time and while we're not expecting a major rush to Australia, certainly other countries are going to."
Cheaper steel could make a difference in the construction of apartments, Housing Industry Association chief economist Tim Reardon said.
"Steel is not a big issue in detached houses, but steel is a significant cost to apartment buildings," he told AAP.
"Certainly lower steel prices have a tangible impact in reducing the cost of apartment construction, but it's important to remember the cost of construction is only a small component of delivering a completed house.
"We're producing half the number of apartments we were a decade ago."
Prime Minister Anthony Albanese spruiked the domestic steel industry on Thursday during a visit to a steelworks in Illawarra.
He said the trade surplus between the US and Australia would benefit Australia's case to be exempted from Mr Trump's tariffs.
"It is in Australia and the United States' interests for us to have free and fair trade between our two countries," he said.
"Australian steel and aluminium has contributed to the United States economy, contributed constructively, and our economic relationship is very important."
Australian ambassador to the US Kevin Rudd was also pushing the case for an Australian exemption during a visit to a Bluescope site in the US state of Tennessee.
Any US tariffs on Australia would be detrimental to the bilateral relationship, Opposition Leader Peter Dutton said.
"There is a deal, I'm sure, to be done with the United  States and there is a lot Australia has to offer, but it's wrong that these tariffs are in place," he told Nine's Today program.
"As the president's demonstrated, he's a deal maker and I think the prime minister, frankly, should have been preparing the ground long before this decision was made."
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