US Imposes 12.5% Trade Tariff on Australia for Alleged Forced Labor Imports

Australia is among dozens of countries facing a 12.5% trade tariff from the Trump administration for allegedly failing to prevent imports of goods made by slave 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 that were found to have failed to properly police a prohibition face a lower 10% rate.

“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” Greer said.

“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 of investigation” into each of the countries – including Australia – contained no specific details.

“For the foregoing reasons, the results of this investigation indicate that the acts, policies and practices of Australia related to the failure to impose and effectively enforce a forced labor import prohibition are unreasonable and burden or restrict U.S. commerce,” the report stated.

The federal government was on Wednesday night seeking urgent clarification from US officials about the proposed new trade sanction.

A spokesperson for the trade minister, Don Farrell, disputed the alleged findings.

“Australia has robust, comprehensive and world-leading legislation addressing forced labour and modern slavery,” the spokesperson said.

“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.”

The US has invited feedback on the tariffs until 6 July, providing an opportunity for Australia to press the case for an exemption.

The new threat comes after the US supreme court earlier this year struck down Trump’s 10% global tariffs.

The president responded to the ruling by immediately announcing temporary trade sanctions, which are due to expire on 24 July.

The Human Rights Law Centre urged the Albanese government to immediately strengthen modern slavery laws – including banning imported goods produced with forced labour.

“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,” the centre’s associate legal director, Freya Dinshaw, said.

“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 are responsible for 99.4% of all imports to the US, according to the trade representative’s report.