Uncovering the Hidden Risk: How a Covert Threat Endangers Australia’s $1.6 Billion Industry

In a move that could impact international trade dynamics, Representative Mark Amodei of Nevada, along with two Republican counterparts from Utah, have introduced a legislative proposal in the House aiming to impose a 30 percent tariff on sheep and lamb products originating from Australia and New Zealand.

This development comes as Australian Trade Minister Don Farrell prepares for his visit to the United States. His trip is aligned with the inauguration of the G’Day USA tourism event in Los Angeles, during which he intends to advocate for the removal of all tariffs between the two nations.

“During my time in the United States, I am committed to continuing our robust advocacy for free and fair trade between our countries,” Minister Farrell stated on Tuesday. “My priority will always be to secure the best possible outcomes for Australian businesses, producers, exporters, and workers.”

Reflecting on the trade relations under former U.S. President Donald Trump, Farrell noted that trade had seen an uptick due to reciprocal tariffs, with Australian imports being taxed at a preferential rate of 10 percent. However, this advantage has diminished under the current global tariff rate of 10 percent, which no longer offers the same competitive edge for Australian goods.

Farrell said trade with the US had actually increased under Trump’s reciprocal tariffs because Australian imports were being taxed at the lowest rate of 10 per cent but that “competitive advantage” was gone under the new 10 per cent rate set globally. 

He said he would try to bring forward meetings scheduled with US Trade Representative Jamieson Greer at the World Trade Organisation conference in a couple of weeks’ time.

“We have to make it very clear to them, to the Americans, that we’re not happy with this decision,” Farrell told Sky News on Monday.

“It’s not consistent with our trade agreement, and it’s not consistent with the way allies should be treating one another.”

The limited text of the lamb bill simply suggests that the president impose “a 30 per cent duty on each sheep product and lamb product originating from Australia or New Zealand”, in addition to other duties in place, before defining the words lamb, lamb product, sheep, sheep product and wool.

Representative Celeste Maloy cosponsored the bill on February 2 and Representative Burgess Owens followed suit on February 13.

It was introduced to the House on January 30 and referred to the House Ways and Means committee.

Utah had the fifth most sheep and lambs of any state last year, according to the American Sheep Industry Association. Nevada, which counts the desert bighorn sheep as its state animal, wasn’t in the top 30.

“MLA will work with industry and the Australian government to navigate the challenges this new tariff hike will impose,” managing director Michael Crowley said.

“The United States was Australia’s number one export market for beef, lamb and goatmeat in 2025, highlighting the importance of this trading relationship for our producers and the broader red meat supply chain.”

The Supreme Court’s stunning rebuke of Trump’s most sweeping tariffs means he can’t conjure up new import taxes on a whim anymore

But the justices’ ruling on Friday is nonetheless unlikely to ease the uncertainty over Trump’s trade policy that has paralysed businesses over the past year. 

“It’s only gotten more complicated for everybody,” said trade lawyer Ryan Majerus, partner at King and Spalding and a former US trade official.

Even though he had weeks to prepare, Trump’s response was chaotic: on Friday, he said he’d use other legal authority to impose 10 per cent levies on imports from other countries. 

On Saturday, he said he was ratcheting it up to 15 per cent — but the levies US Customs and Border Protection started collecting at 12.01am on Tuesday were just 10 per cent.

Trump initially ridiculed the Supreme Court justices who voted down his sweeping tariff policy on Friday before taking a more measured tone in his almost two-hour State of the Union address on Tuesday (Wednesday night AEDT), describing the decision as “unfortunate”.

Any country that wants to “play games” with the Supreme Court decision, Trump posted on social media, would be met with “a much higher Tariff, and worse, than that which they just recently agreed to”.

“The good news is almost all countries and corporations want to keep the deal that they already made,” Trump said Tuesday. 

He claimed his legal power he had to make a new deal “could be far worse for them”.

– Reported with Associated Press

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