The United States has announced a new 12.5% tariff on Australian exports, citing concerns over Australia's efforts to combat forced labor. The announcement was made on Friday morning (AEST) as part of a broader tariff regime affecting multiple countries. Australia’s Trade Minister, Don Farrell, criticized the tariffs as unjustified and inconsistent with the free trade agreement between the US and Australia. He noted that Australia's three largest export categories, including beef and gold, will not be affected by the new tariffs.
The US Trade Department included Australia in a list of 54 economies that allegedly failed to effectively enforce prohibitions against goods produced with forced labor. Other countries facing the same tariff include Brazil, China, and Russia. In contrast, countries like the UK and Canada will face a lower 10% tariff due to different enforcement levels regarding forced labor.
This action follows a previous Supreme Court ruling that struck down Trump's 10% global tariffs. In response, Trump announced temporary trade sanctions, which were set to expire on the day of the new tariff announcement. US Congresswoman Linda Sánchez criticized the rationale for the tariffs, suggesting they are a means for Trump to bypass legal restrictions.
Farrell emphasized Australia's strong measures against forced labor, asserting that the country is recognized for its leadership in this area. Deputy Prime Minister Richard Marles also expressed confusion over the US decision, highlighting Australia's robust legal framework against forced labor. Various industry leaders in Australia have voiced their disappointment, with some claiming the government failed to secure lower tariffs compared to other nations.