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Trump could slap Australia with 12.5% tariff for allegedly importing goods made by slave labour
TL;DR
The Trump administration may impose a 12.5% tariff on Australia for allegedly importing goods made with slave labor. This decision affects 54 countries that failed to enforce prohibitions against such imports.
Key points
- Trump administration may impose a 12.5% tariff on Australia
- Tariff due to alleged imports of goods made with slave labor
- 54 countries listed for failing to enforce prohibitions
- Six countries face a lower 10% tariff rate
- US trade representative emphasizes unfair competition
Mentioned in this story
Trump administrationUS trade representativeAustralia
Australia is among dozens of countries facing a 12.5% trade tariff from the Trump administration for allegedly failing to prevent imports of goods made by slave labour.
The US trade representative, Jamieson Greer, listed Australia among 54 economies that “failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor” following an investigation into their practices.
A further six countries that were found to have failed to properly police a prohibition face a lower 10% rate.
“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. We will no longer tolerate this disparity.”
A report summarising the “findings of investigation” into each of the countries – including Australia – contained no specific details.
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“For the foregoing reasons, the results of this investigation indicate that the acts, policies and practices of Australia related to the failure to impose and effectively enforce a forced labor import prohibition are unreasonable and burden or restrict U.S. commerce,” the report stated.
The federal government was on Wednesday night seeking urgent clarification from US officials about the proposed new trade sanction.
A spokesperson for the trade minister, Don Farrell, disputed the alleged findings.
“Australia has robust, comprehensive and world-leading legislation addressing forced labour and modern slavery,” the spokesperson said.
“Australia maintains our position that any tariffs on Australian exports to the United States are unjustified and inconsistent with our free trade agreement. We continue to use every opportunity to advocate that US tariffs imposed on Australia are unwarranted.”
The US has invited feedback on the tariffs until 6 July, providing an opportunity for Australia to press the case for an exemption.
The new threat comes after the US supreme court earlier this year struck down Trump’s 10% global tariffs.
The president responded to the ruling by immediately announcing temporary trade sanctions, which are due to expire on 24 July.
Q&A
Why is Australia facing a 12.5% tariff from the Trump administration?
Australia is facing a 12.5% tariff for allegedly failing to prevent imports of goods produced with forced labor.
What did the US trade representative say about the situation?
US trade representative Jamieson Greer stated that the failure of trading partners to address forced labor imports creates an unlevel playing field for American workers.
Which other countries are affected by the proposed tariffs?
In addition to Australia, 54 economies are facing a 12.5% tariff, while six others face a lower 10% rate for similar failures.
