The United States has imposed a 12.5% tariff on many Australian exports, citing claims that Australia is not doing enough to combat forced labor. However, the Albanese government has demanded the removal of these tariffs, stating that they are unjustified and inconsistent with the free-trade agreement between the two countries.
The US trade department announced on Friday that Australia is among 54 economies deemed to have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor. Other countries facing the same 12.5% tariff include Brazil, China, Egypt, Israel, Japan, New Zealand, Norway, Russia, and Singapore. Economies on a separate list, including the UK, India, Indonesia, Canada, and Mexico, will be subject to a lower 10% tariff.
The Australian trade minister, Don Farrell, has called for the US to change course, stating that Australia’s measures to combat forced labor and modern slavery are among the strongest in the world. The deputy prime minister, Richard Marles, has also expressed disappointment, saying that the US actions make no sense and that Australia has laws in place to combat forced labor.
The US trade action document includes exemptions for a range of goods, including beef, agricultural products, aircraft parts, and certain coal, oil, mineral, and chemical products. However, the shadow trade minister, Matt Canavan, has claimed that the Albanese government has failed exporters by not securing lower tariffs, like the UK or Canada.
The Australian Chamber of Commerce and Industry’s chief executive, Andrew McKellar, has described the move as a ludicrous decision and completely unjustified. The Business Council of Australia’s head, Bran Black, has also expressed disappointment, saying that the US trade chief’s finding rests on a narrow claim without identifying a single company, enforcement failure, or quantified trade impact.
The National Farmers’ Federation’s chief, Michael Guerin, has said that the industry is profoundly disappointed, stating that the US has chosen to further increase barriers to trade despite Australia’s longstanding record of high standards and responsible trade.
