The Trump administration has threatened to impose a 12.5% tariff on Australian exports, alleging that Australia fails to prevent imports of goods made by forced labour. The US trade representative, Jamieson Greer, listed Australia among 54 economies that have not effectively enforced a prohibition on forced labour imports.
The proposed tariff follows an investigation into the practices of 60 countries, which the US claims are responsible for 99.4% of all imports to the United States. Six other countries face a lower 10% rate. Greer stated that the failure of trading partners to address forced labour imports creates an unlevel playing field for American workers.
The Australian government has sought urgent clarification from US officials. A spokesperson for Trade Minister Don Farrell disputed the findings, asserting that Australia has 'robust, comprehensive and world-leading legislation addressing forced labour and modern slavery.' The spokesperson added that any tariffs are unjustified and inconsistent with the free trade agreement between the two nations.
The Human Rights Law Centre urged the Australian government to strengthen modern slavery laws, including banning imports produced with forced labour. Associate legal director Freya Dinshaw warned that Australia is vulnerable to such penalties if it does not take sufficient steps to prevent forced labour in supply chains.
The US has invited feedback on the tariffs until 6 July, providing Australia an opportunity to seek an exemption. The new threat comes after the US Supreme Court struck down Trump's earlier 10% global tariffs, prompting temporary trade sanctions set to expire on 24 July.
