US Slaps 12.5% Tariff on Australia Over Forced Labour Claims
US Slaps 12.5% Tariff on Australia Over Forced Labour

The United States has announced plans to impose a 12.5 percent tariff on Australia and dozens of other nations, citing an alleged failure to prevent the importation of goods produced with forced labour.

US Trade Representative's Statement

US Trade Representative Jamieson Greer declared that this alleged failure was "unacceptable." He argued that the new tariffs, which add to previously announced sweeping 10 percent tariffs, were necessary because American workers were forced to compete "on an unlevel playing field."

"We will no longer tolerate this disparity," Mr. Greer stated.

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Australia Among 60 Countries Targeted

Australia is one of 60 countries singled out by the US for allegedly not stopping imports of forced labour goods. The Trump administration has proposed an additional 12.5 percent tariff on Australian goods, with similar measures for other nations.

Different Tariff Levels

The administration said countries that have implemented forced-labour import bans, committed to a ban, or operate a partial prohibition would face additional tariffs of 10 percent. This levy applies to 15 countries, including Canada, Ecuador, Indonesia, Malaysia, Britain, and the European Union.

The remaining 45 countries, including Australia, will face a higher additional tariff of 12.5 percent under Trump's proposal.

"Some trading partners have taken initial steps to prevent the importation of forced labor goods, including through USMCA and commitments in Agreements on Reciprocal Trade," Mr. Greer noted. "However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labour globally."

Timing and Context

Mr. Greer's announcement comes ahead of the July 24 expiration of a temporary 10 percent tariff imposed by the Trump administration on February 20. That tariff was implemented on the same day the Supreme Court struck down US President Donald Trump's tariffs under the International Emergency Economic Powers Act.

SkyNews.com.au has contacted Trade Minister Don Farrell for comment.

This development marks a significant escalation in US trade policy, targeting allies and partners over labour practices.

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