Australia faces proposed 12.5% US tariff over forced labour crackdown
Australia has been included in a proposed 12.5 percent additional tariff announced by the US Trade Representative. The decision is part of a new US package targeting forced-labour risk in global supply chains.
ABC News AustraliaAccording to ABC News, the US Trade Representative (USTR) included Australia in a proposed additional tariff under its Section 301 report. The decision was framed as the latest stage in the trade policy agenda of President Donald Trump's administration.
Australian Trade Minister Don Farrell told ABC that Canberra will file a formal submission to the USTR during the consultation phase. Australian Exporters Council president Dianne Tipping said exporters of meat, iron ore and mining products are conducting impact assessments.
In an ABC interview with Sydney's Lowy Institute analyst Roland Rajah, Rajah said bilateral US-Australia trade was at A$30 billion in 2025 and that the additional tariff could mean A$3.5 billion in extra cost on an annual basis. Reuters reported that the comment period will remain open for 30 days.
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