US President Donald Trump has slapped a new 12.5 per cent tariff on imports from Australia.
The White House announced on Friday Australian time that new tariffs of between 10 per cent and 12.5 per cent would be imposed on 60 trading partners from midnight US time on Friday – 2pm AEST.
The new tariffs have been announced on trading partners for their alleged failures to act against forced labour.
US President Donald Trump has imposed a 12.5 per cent tariff on Australian imports to the US. Picture: Saul Loeb/Pool/AFP
Deputy Prime Minister Richard Marles says the US decision makes no sense as Australia has “some of the strongest laws in the world” to combat the entry of goods made with forced labour.
“We obviously are supportive of an open global trading system. That’s actually what has seen an enormous rise in productivity and prosperity around the world,” he told ABC Radio National shortly after the announcement.
“In relation to our trading relationship with the United States, the US Australia-US Free Trade Agreement has been really important in terms of promoting jobs in both countries and providing for freer trade and lower prices between both countries.”
Australia and Anthony Albanese have protested against Trump tariffs, calling them unwarranted.
In a formal submission made earlier in July, Australia reiterated its opposition to Mr Trump’s tariffs, arguing Australia had some of the world’s strongest legislation to tackle forced labour. .
Mr Marles said Australia would continue to lobby against the tariffs.
Prime Minister Anthony Albanese has previously argued against US tariffs, calling them unwarranted. Picture: NewsWire / Brenton Edwards
US Trade Ambassador Jamieson Greer said the decision would “correct”, accusing countries of failing to act on forced labour.
“President Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains,” Ambassador Greer said.
“The United States has had a forced labour import ban for nearly a century, and rigorously enforces it.
“It’s well past time for our trading partners to do the same.
“Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere.
“I am encouraged by the trading partners who have moved quickly to adopt forced labour import prohibitions, and look forward to ensuring their effective enforcement.”
The new tariff come as the 10 per cent tariff was due to expire.
The temporary 150 day 10 per cent tariffs were implemented as a stopgap measure after the Supreme Court ruled in February that the sweeping duties imposed by President Trump under the International Emergency Economic Powers Act were illegal.
The new tariffs have been imposed uner Section 301 of the Trade Act, which allows the US to combat unfair trade practices by other countries, rather than the sweeping presidential emergency powers Trump used for his earlier “reciprocal” tariffs.
More to come