AUSTRALIA appears to be in a good position to avoid US President Donald Trump's steel and aluminium tariffs.

Mr Trump did not specifically name Australia at a signing ceremony on Thursday at the White House, but he indicated "great partners and military allies" may sidestep America's new 25 per cent tariffs on steel imported into the US and 10 per cent on aluminium.

Nations can apply for exemptions, something Australian Foreign Affairs Minister Julie Bishop - who is in the US this week, said Australia will do.

"We have to protect and build our steel and aluminium industries while at the same time showing great flexibility and co-operation toward those who are really friends of ours both on a military and trade basis," Mr Trump said at the White House ceremony.

Earlier on Thursday Mr Trump, unprompted while discussing tariffs, described Australia as a "great country", "long term partner" and "we will be doing something with them" in terms of the new tariffs.

Mr Trump also announced plans to encourage foreign steel and aluminium producers to build plants in the US.

"We will not place any new tax on product made in the USA," Mr Trump said.

"So there's no tax if a product is made in the USA."