US imposes new forced-labour tariffs on Australian exports

The United States has imposed a new 12.5% tariff on many Australian exports, prompting the Albanese government to demand the measures be withdrawn and reject Washington’s claim that Australia is failing to combat forced labour in supply chains.

The tariffs, announced Friday morning Australia time, are part of a broader Trump administration trade action targeting dozens of economies. Washington said the measures apply to trading partners it says have not adequately restricted imports made with forced labour. Rates range from 10% to 12.5%.

Australia was placed on a list of 54 economies the US trade department said had “failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor”. Other economies facing a 12.5% tariff include Brazil, China, Egypt, Israel, Japan, New Zealand, Norway, Russia and Singapore.

A separate group, including the United Kingdom, India, Indonesia, Canada and Mexico, faces a lower 10% tariff after the US said they had failed to enforce forced-labour prohibitions. The tariffs apply “to the top 60 U.S. trade partners covering 99.4% of U.S. imports”, according to a US trade department statement.

The Australian government said the country’s three largest export categories, including beef and gold, would avoid the tariff hit. The US trade action document lists exemptions for a range of goods, including beef, agricultural products such as fruits and vegetables, aircraft parts, certain coal, oil, mineral and chemical products, some metal and steel products, timber products and machinery.

Australian Trade Minister Don Farrell said the tariffs should be removed immediately.

“These tariffs are unjustified, inconsistent with our free-trade agreement and should be removed,” Farrell said. “Australia’s measures to combat forced labour and modern slavery are among the strongest in the world and we are recognised globally, including in the US, for our leadership.”

Speaking in Adelaide, Farrell said Australia would “continue to lobby the United States” to remove the tariffs. On the ABC’s Afternoon Briefing program, he said he had previously had “acrimonious” talks with US Trade Representative Jamieson Greer over tariffs.

“The idea that the Americans should impose this tariff … is just crazy to be honest with you,” Farrell said. “And the idea that India or Pakistan has a better regime, in terms of modern slavery, than Australia is simply incorrect.”

Deputy Prime Minister Richard Marles told ABC radio the US actions “make no sense”.

“Forced labour is definitely something which needs to be combated around the world, so we support that objective,” he said. “But we have laws, which are amongst the strongest in the world, and we’ve been making that point to the Trump administration.”

The Trump administration justified the levies under Section 301 of the Trade Act of 1974. The American trade action document says “the United States is the only country in the world to adopt, and effectively enforce, a ban on imports made with forced labor” and that “President Trump is asking all trading partners to join the United States in eliminating forced labor from global supply chains.”

The move follows a US Supreme Court ruling earlier this year that struck down Trump’s 10% global tariffs. Trump then announced temporary trade sanctions, which were due to expire Thursday night. The Guardian reported that Australian government sources had previously said they believed the forced-labour tariffs were being used as a replacement for tariffs struck down by the courts.

US Representative Linda Sánchez, a California Democrat, denounced the rationale for the new tariffs. “President Trump isn’t serious about combating forced labor. He’s trying to make an end-run around the Supreme Court and Congress to reimpose his illegal tariffs,” Sánchez wrote on social media.

Other governments also questioned the policy. New Zealand Prime Minister Christopher Luxon called the tariffs “extremely disappointing to see” and said the US investigation “did not provide meaningful evidence to support claims in relation to forced labour”. Japan’s Chief Cabinet Secretary Minoru Kihara said it was “regrettable” that tariffs had been imposed, while China’s Foreign Ministry spokesman Lin Jian said, “Tariff wars and trade wars do not serve any parties’ interests.”

In Australia, business and farming groups criticised the decision. Australian Chamber of Commerce and Industry chief executive Andrew McKellar called it “ludicrous” and “completely unjustified”. Business Council of Australia head Bran Black said the US finding rested on a “narrow claim” without “identifying a single company, enforcement failure, or quantified trade impact”. National Farmers’ Federation chief Michael Guerin said the industry was “profoundly disappointed”.

Shadow trade minister Matt Canavan said the Albanese government had “failed” exporters by not securing lower tariffs like the UK or Canada and had not taken meaningful action against forced labour in international supply chains.