US proposes 12.5% tariff on Australian imports over forced labour claims
The Trump administration has listed Australia among 54 economies facing new trade sanctions, citing alleged failures to prohibit goods produced with forced labour.
The US Trade Representative has proposed a 12.5% tariff on Australian imports, listing Canberra among 54 economies accused of failing to effectively prohibit the importation of goods produced with forced labour. The move, announced by US Trade Representative Jamieson Greer, follows an investigation into the trade practices of 60 nations that account for 99.4% of all imports to the United States.
Greer stated that the failure of key trading partners to address forced labour imports creates an unlevel playing field for American workers. The report summarising the findings described Australia’s practices as unreasonable and burdensome to US commerce, although it provided no specific details regarding the alleged failures. A further six countries, found to have failed to properly police such prohibitions, face a lower 10% tariff rate.
Australian Trade Minister Don Farrell’s office has firmly disputed the allegations, asserting that the country possesses robust, comprehensive, and world-leading legislation addressing modern slavery. A spokesperson for the minister argued that any tariffs on Australian exports are unjustified and inconsistent with the existing US-Australia free trade agreement. The federal government is currently seeking urgent clarification from US officials and plans to submit feedback before the 6 July deadline to argue for an exemption.
The proposed sanctions are temporary trade measures introduced by President Trump after the US Supreme Court struck down his initial 10% global tariffs earlier this year. These temporary sanctions are scheduled to expire on 24 July. Other nations facing the 12.5% rate include China, India, the United Kingdom, Japan, and New Zealand.
Meanwhile, the Human Rights Law Centre has urged the Albanese government to strengthen domestic modern slavery laws to mitigate such risks. Associate legal director Freya Dinshaw warned that Australia is vulnerable to penalties if it does not take sufficient steps to prevent forced labour in global supply chains, noting that alarm bells had been ringing for some time regarding the risk of such goods entering Australian markets.
