** Shares of Australian building products makers drop after local media reported the country will not be exempt from U.S. steel and aluminium tariffs that President Donald Trump's administration will impose

** Shares in Brambles BXB.AX which makes pallets, dropped as much as 3% to their lowest since February 25

** James Hardie Industries JHX.AX, a fiber cement maker, slumped up to 3.2%

** Trump agreed in February to consider exempting Australia from the tariffs given the U.S. trade surplus with the country, following a phone call with Australian Prime Minister Anthony Albanese

** Brambles makes both steel and aluminium pallets

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))