Trump Imposes 12.5% Tariffs on Australian Exports Over Forced Labor Allegations, Canberra Demands Reversal

Donald Trump has imposed new trade tariffs on Australian exports, alleging the nation has failed to adequately combat forced labor, though the Albanese government has demanded their immediate removal.

The United States announced on Friday morning (AEST) that numerous Australian exports now face a 12.5% tariff as part of a broader regime affecting 54 economies. However, the Australian government says the country’s three largest export categories — including beef and gold — will be exempt.

In a statement, the U.S. Trade Department said Australia was among economies deemed to have “failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.” Other nations facing the 12.5% rate include Brazil, China, Egypt, Israel, Japan, New Zealand, Norway, Russia, and Singapore.

A separate group of economies — including the United Kingdom, India, Indonesia, Canada, and Mexico — will be subject to a lower 10% tariff after the U.S. claimed they had only failed to “enforce” forced labor prohibitions.

Friday’s action follows through on an earlier Trump administration threat to levy such tariffs, which came after the U.S. Supreme Court earlier this year struck down Trump’s 10% global tariffs. The president responded to that ruling by announcing temporary trade sanctions that were set to expire Friday.

Australian government sources had previously indicated they believed the forced labor-related tariffs were imposed as a replacement for those invalidated by the courts.

U.S. Representative Linda Sánchez, a California Democrat, denounced the justification for the new tariffs as a sham.

“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.

The American trade action document claims “the United States is the only country in the world to adopt, and effectively enforce, a ban on imports made with forced labor.” It adds that “President Trump is asking all trading partners to join the United States in eliminating forced labor from global supply chains.”

In total, the tariffs apply “to the top 60 U.S. trade partners covering 99.4% of U.S. imports,” according to the trade department statement.

Australian Trade Minister Don Farrell immediately called for the U.S. to reverse course.

“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 U.S., for our leadership.”

On the ABC’s Afternoon Briefing program, Farrell said he had previously held “acrimonious” talks with U.S. Trade Representative Jamieson Greer over tariffs.

“The idea that the Americans should impose this tariff … is just crazy to be honest with you,” he 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 U.S. 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 U.S. trade action document outlining the new tariffs includes exemptions for a range of goods including beef; agricultural products such as vegetables and fruits; aircraft parts; certain coal, oil, mineral, and chemical products; some metal and steel products; timber products; and machinery.

Shadow Trade Minister Matt Canavan claimed the Albanese government had “failed” exporters by not securing lower tariffs like those applied to the UK or Canada.

“Australia is subject to a 12.5% tariff rate, the same rate as Russia, China and Venezuela,” the Nationals leader said. Canavan added that the government had “failed to take meaningful action against forced labour in international supply chains, despite years of warnings.”

Australian Chamber of Commerce and Industry chief executive Andrew McKellar described the move as a “ludicrous decision” and “completely unjustified.”

Business Council of Australia head Bran Black said the U.S. trade chief’s finding rests 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.”

“Rather than moving back towards the free and fair trading arrangements that have served both our countries well for two decades, the United States has chosen to further increase barriers to trade, despite Australia’s longstanding record of high standards and responsible trade,” he said.

The action, as it pertains to Australia specifically, states that after an investigation, “the Trade Representative has determined to impose 12.5 percent tariffs on products of Australia” except for a limited number of exemptions.

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