Australia could soon be hit with a 12.5 per cent U.S. tariff, after the Trump administration accused dozens of countries of failing to prevent goods made with forced labour from entering global supply chains.
The proposed tariff hike was unveiled by the U.S. Trade Representative (USTR) as part of a sweeping investigation into what Washington describes as unfair trade practices by 60 countries. Australia is listed among 45 nations facing the higher 12.5 per cent rate a group that includes China, Japan, India, South Korea, Brazil and Switzerland.
A second tier of countries, including Canada, Britain, the European Union and Mexico, would face a lower 10 per cent duty.
U.S. Trade Representative Jamieson Greer said the United States would “no longer tolerate” trading partners who failed to act against forced labour in their supply chains. He argued that inaction abroad created an unfair competitive environment for American workers.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” Greer said. “This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.”
The USTR also floated a new textile mechanism that would allow a limited volume of clothing and textile imports to enter the U.S. at reduced tariff rates, though details remain unclear.
A spokesperson for Australia’s Trade Minister pushed back strongly, saying any new U.S. tariffs on Australian exports would be “unjustified” and inconsistent with the Australia–U.S. Free Trade Agreement.
The proposal marks a significant escalation in Washington’s trade enforcement strategy and places Australia in the crosshairs of a policy shift that could reshape export markets and bilateral relations.
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