Australia to Criminalize Modern Slavery in Corporate Supply Chains After U.S. Tariff Threat

Australia is set to toughen its stance on modern slavery, making large companies criminally liable for forced labor and debt bondage within their supply chains. The announcement comes weeks after the United States threatened trade tariffs, signaling a potential shift in international pressure on the issue.

Attorney-General Michelle Rowland stated that companies with revenues exceeding A$100 million (approximately S$90 million) will face a new criminal offense if they fail to prevent modern slavery in their overseas supply chains. This legislative update aims to address concerns that existing laws, enacted eight years ago, are insufficient. "Australians rightly expect that the products they buy are not made on the back of modern slavery," Rowland commented.

The move follows Australia's protest against the U.S. Trade Representative's inclusion of Australia among 60 countries potentially facing a 12.5 percent tariff for failing to curb imports of goods produced with forced labor. While around 4,000 Australian companies annually report on their anti-slavery measures, and the Federal Police investigated 280 reports of modern slavery and human trafficking in 2025, the U.S. perceived these efforts as insufficient.

Australian Anti-Slavery Commissioner Chris Evans noted that Australia, once a leader in anti-slavery regulations, has fallen behind other nations implementing stricter actions. Justine Nolan, Director of the Australian Human Rights Institute, believes the upcoming changes are significant and will compel companies to act more decisively. She also suggested a correlation between the timing of these legal reforms and the U.S. tariff threat, indicating that companies demonstrating reasonable preventative steps will have a defense under the new law. Additionally, civil penalties will be introduced for non-compliance with existing obligations under the Modern Slavery Act.

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Australians rightly expect that the products they buy are not made on the back of modern slavery.