US Proposes 12.5% Tariff on Australian Goods Over Forced Labor Concerns

The US is proposing a 12.5 per cent tariff on Australian goods, accusing dozens of countries of failing to properly stop products made with forced labour from entering supply chains.

Prime Minister Anthony Albanese says the move is unwarranted and undermines the global trading system.

He also rejected the criticism, saying Australia has “robust, comprehensive, and world-leading” laws dealing with forced labour and modern slavery.

The proposal comes as the Trump administration looks for new ways to rebuild its global tariff regime, after earlier emergency tariffs were struck down.

Keep in mind, for now, it is still a proposal, with public consultation to come, but Australia says it will keep pressing its case with the US.

You can read the full story below.

The ASX 200 has begun the morning trading down by almost 1 per cent.

Basic materials and technology stocks were the main drag in the opening minutes.

Take a look below.

In the first 20 minutes of trade, 133 stocks were in the red, 59 were rising and eight were unchanged.

Here are the top movers so far.

Treasury Wine Estates surged by more than 10% as it held its investor day.

Meanwhile, Pantoro Gold and Nextgen Energy led the losses.

Morning Michael. You’re on the blog early. I’m a bit surprised that none of the morning commentators around the news sphere seem to be asking about the catastrophic ABS illicit tobacco report yesterday ? Any plans from ABC to query it with politicians ?

- Phillip

Hi Phillip.

Not on too early — I am usually at work by 7:30am, but tied up in editorial meetings most of the morning...

Anyway, to your question, my colleague Jane Norman in Parliament House took a look at this yesterday arvo (see link below).

Peter Martin also took a deep dive into this topic on The Economy, Stupid podcast a couple of weeks ago, which is a great listen.

Definitely something we'll be following up over the coming weeks and months.

Markets were hit by a fresh escalation in the US-Iran conflict. Oil prices jumped again, with oil pricing nearing $100US a barrel, Brent crude has settled back at $US97.81 .

Investors worried the latest flare-up, which saw the US and Iran clash again, with Kuwait and Bahrain caught in the crossfire, could push any peace deal further out of reach.

That raised fears higher energy costs could feed back into inflation, making it harder for central banks to cut rates.

US stocks pulled back from record highs, while bond yields rose.

One of the world's biggest gambling groups is moving into Australia's booming "rewards club" industry, and anti-gambling advocates are raising concerns.

A company linked to Sportsbet's parent company, Flutter Entertainment, is behind Sportsdream Rewards, a subscription-style club offering members entries into prize draws for cars, cash and holidays.

These clubs operate under trade promotion laws, which critics argue are being used as a loophole to run giveaway-style draws under less stringent rules than traditional gambling products.

The federal government has promised to crack down on so-called "dodgy lotteries", but advocates say enforcement has so far been limited.

You can read ABC's Jasper Wells' full story below.

A new economic report by consultancy firm Deloitte says the AI "winners" will be organisations that combine human and machine strengths, with recruiters saying human judgement will still be key.

The report says there is still limited evidence of widespread job losses linked directly to AI. But hiring is starting to slow in some occupations most exposed to the technology, particularly white-collar and knowledge-based roles like software programming, web development and some administrative work.

ABC's Bronwyn Herbert has taken a closer look at what AI is doing to jobs, hiring and the skills workers may need next, you can read her full story below.

The Trump administration is proposing new tariffs on imports from dozens of countries, saying they have failed to properly crack down on goods made with forced labour.

Australia is among the countries facing the higher proposed tariff rate of 12.5 per cent, alongside China, India, Japan, South Korea, Vietnam and New Zealand.

Prime Minister Anthony Albanese said on ABC Radio this morning that Australia will keep pushing back, arguing US tariffs are unwarranted and undermine the global trading system.

He also rejected the forced-labour criticism, saying Australia has “robust, comprehensive, and world-leading” laws dealing with forced labour and modern slavery.

The US says the move is about protecting American workers from unfair competition. But it also appears to be part of a broader effort to rebuild Donald Trump’s global tariff regime, after earlier emergency tariffs were struck down by the US Supreme Court.

Elon Musk's SpaceX is preparing for what could be the biggest share market float in history, after publicly setting a $US135-a-share price ahead of its planned Nasdaq listing.

The rocket and satellite company is aiming to raise $US75 billion, which would be the most ever for an IPO according to Reuters.

The deal would value SpaceX at about $US1.75 trillion, which would instantly put it among the 10 most valuable listed companies in the US.

What is unusual is how SpaceX is doing it. Normally, companies and their bankers spend the roadshow testing demand from big investors before settling on a price. But SpaceX has named its price early, breaking with the usual Wall Street playbook.

There are questions though about whether that valuation is too high. SpaceX's revenue rose 33 per cent last year to $US18.67 billion, but the company still posted a net loss of almost $US5 billion. Many analysts say this is a company which is hard to compare with other listed companies because it's a business which cuts across many areas: rockets, satellites, defence, telecoms and Starlink internet and so on.

Here's a chart that shows how SpaceX's IPO is set to compare with others.

Good morning, and welcome to the ABC's finance blog.

I'll be taking you through the latest market action this morning.

The ASX is set for a weaker start this morning, after global markets lost ground.

Wall Street pulled back from recent highs, with tech and financial stocks among the main drags, as renewed hostilities in the Middle East hit investor confidence. Oil prices also climbed, as hopes for a swift end to the Iran war faded again.

Locally, there’ll certainly be a few things to watch. RBA governor Michele Bullock is due to appear before Senate estimates this afternoon, alongside two assistant governors Christopher Kent and Sarah Hunter.

We will hear from deputy governor Andrew Hauser tomorrow as well.

And we'll get fresh trade data at 11:30am AEST, which will give markets another read on demand for Australia's key exports.

Anyway, sit back, grab a coffee or tea, and I'll be back with more updates shortly!

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