The Trump administration has threatened to impose a 12.5% tariff on Australia and dozens of other countries for allegedly failing to prevent imports of goods produced by forced 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 found to have failed to properly police a prohibition face a lower 10% rate.
US Justification and Australian Response
Greer stated, 'The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. 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 for each country, including Australia, contained no specific details.
The Australian government was urgently seeking clarification from US officials about the proposed tariff. A spokesperson for Trade Minister Don Farrell disputed the findings, saying, 'Australia has robust, comprehensive and world-leading legislation addressing forced labour and modern slavery. 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.'
Opportunity for Exemption
The US has invited feedback on the tariffs until 6 July, providing Australia a chance to argue for an exemption. The new threat follows the US Supreme Court striking down Trump's earlier 10% global tariffs, prompting the president to announce temporary trade sanctions expiring on 24 July.
The Human Rights Law Centre urged the Albanese government to strengthen modern slavery laws, including banning imported goods produced with forced labour. Associate Legal Director Freya Dinshaw said, 'Buying goods should never come at the expense of someone else's freedom. The alarm bells have been ringing for a long time in relation to the risk of goods made with forced labour flooding Australian shop shelves. If the US is looking to penalise countries who have not taken sufficient steps to prevent forced labour in global supply chains, then Australia is indeed vulnerable.'
China, India, the United Kingdom, Japan, and New Zealand are among the other 54 countries facing the 12.5% rate. The 60 economies subjected to the review account for 99.4% of all US imports, according to the trade representative's report.
