The Trump administration has threatened to impose a 12.5% tariff on Australia and dozens of other countries for allegedly failing to prevent the importation of goods produced by slave labour. The US trade representative, Jamieson Greer, listed Australia among 54 economies that had “failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor” after an investigation into their trade practices.
Six other countries found to have fallen short of properly policing such a ban face a lower rate of 10%. “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 for each country, including Australia, contained no specific details. It stated: “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 Australian government was urgently seeking clarification from US officials about the proposed trade sanction on Wednesday night. A spokesperson for Trade Minister Don Farrell disputed the 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, offering Australia a chance to argue for an exemption. This new threat follows the US Supreme Court’s decision earlier this year to strike down Trump’s 10% global tariffs. The president responded by immediately announcing temporary trade sanctions, which are set to expire on 24 July.
The Human Rights Law Centre urged the Albanese government to strengthen modern slavery laws without delay, including banning imported goods made 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,” said Freya Dinshaw, the centre’s associate legal director. “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 under review account for 99.4% of all US imports, according to the trade representative’s report.
