Trade Minister Clarifies: New Trump Tariffs Unrelated to Australia’s Slavery Legislation

The Australian Trade Minister has clarified that an increase in tariffs on exports to the United States is unrelated to the country’s approach to modern slavery, following discussions with his American counterpart.

Last week, the administration under former President Donald Trump announced its intention to impose a new 12.5 percent tariff on many nations it claims are not effectively combating the issue of forced labor in their supply chains.

This proposed tariff was revealed by US Trade Representative Jamieson Greer as part of an investigation aimed at addressing what the US perceives as unfair trade practices by 60 countries worldwide.

However, Trade Minister Don Farrell indicated that Australia does not concur with the US rationale behind this plan.

“I don’t perceive a direct connection between the two issues,” Farrell commented on Tuesday when questioned about potential negotiations with the US regarding its assertion that Australia falls short in addressing slavery within its supply chains.

“We have a range of mechanisms to deal with this in Australia, and we use those mechanisms to do our level best to end modern slavery.”

The US Supreme Court in February ruled that US President Donald Trump’s sweeping global tariffs, imposed unilaterally, were unconstitutional. 

He then brought in a temporary 10 per cent global tariff, to remain in place until 24 July. Some Australian exports, like beef and gold, are now exempt.

Farrell said the higher rate could, for several days, be in place at the same time as the existing 10 per cent duty.

“That was the first question I asked my counterpart, Jamieson Greer,” Farrell said, in reference to a meeting with the US trade representative in Paris last week. 

The US did not intend to enforce both tariffs at once, he said, so goods were likely to be subject to either the 12.5 or 10 per cent during the transition period, but there was little clarity as to which. 

Australia is among 45 countries facing the higher 12.5 per cent rate, along with India, Japan, China, South Korea, Brazil and Switzerland. 

Another group, which would include Britain, the European Union and Canada, would face a 10 per cent duty. 

The US has opened channels for feedback on the plan until 6 July and Australia has put forward a bid for an exemption from the imposte. 

Farrell said he put forward Australia’s case as strongly as possible. 

“We have a free-trade agreement with the United States, which we honour,” he said. 

“We don’t apply tariffs to any goods that come in from the United States. We expect the United States to do exactly the same and honour our free-trade agreement.”

The US has a trade surplus with Australia, meaning Australia buys more from the US than it sells.   

Hearings are due to begin on 7 July, just before the existing US tariffs expire.

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