Trump Hits Australian Exports With New Tariffs Over Forced Labor Claims; Australia Demands Removal

Donald Trump's administration has imposed new trade tariffs on Australian exports, alleging the country is insufficient in combating forced labor. The Australian government has demanded the immediate removal of these tariffs.

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These tariffs are unjustified, inconsistent with our free-trade agreement and should be removed.

The United States announced on Friday morning (AEST) that many Australian exports would now face a new 12.5% tariff. This measure is part of a broader trade regime affecting 54 economies that the US trade department deemed as having “failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.” Other nations, including Brazil, China, and Russia, are also subject to the 12.5% tariff, while countries like the UK, India, and Canada face a lower 10% tariff.

The US trade action document asserts that the United States is uniquely enforcing a ban on imports made with forced labor and is urging all trading partners to join in eliminating such practices from global supply chains. These tariffs apply to the top 60 US trade partners, covering 99.4% of US imports.

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Australia’s measures to combat forced labour and modern slavery are among the strongest in the world and we are recognised globally, including in the US, for our leadership.

Australian Trade Minister Don Farrell strongly opposed the tariffs, stating they are "unjustified, inconsistent with our free-trade agreement and should be removed." He emphasized that Australia's measures against forced labor and modern slavery are among the world's strongest and globally recognized. Deputy Prime Minister Richard Marles echoed this sentiment, telling ABC radio that the US actions "make no sense" and that Australia's laws are robust. He stressed the importance of free trade between Australia and the US, benefiting both nations, and affirmed continued advocacy on this stance to the Trump administration.

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Forced labour is definitely something which needs to be combated around the world, so we support that objective. But we have laws, which are amongst the strongest in the world, and we’ve been making that point to the Trump administration.

The US trade document outlines exemptions for various goods, including beef, agricultural products, aircraft parts, certain minerals, metals, timber, and machinery. The tariffs are set to take effect on July 24th at 12:01 a.m. US eastern time, with exceptions for goods already loaded for shipment.

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We want to see freer trade and more trade flows between Australia and the United States. Both of our countries benefit from that. We continue to make that argument to the Trump administration, both in terms of trade but also in terms of our stance in relation to forced labour, and that’ll continue to be our position and the way in which we advocate.