Australia faces proposed 12.5pc US tariff over forced labour crackdown
Australia is facing a proposed 12.5 percent tariff from the US due to allegations of failing to combat forced labour in imports. The Australian government has stated that such tariffs are unjustified and inconsistent with their free trade agreement. A public consultation process will begin on July 7 before any tariffs take effect.
- ▪The US proposal targets countries accused of not addressing forced labour in their supply chains.
- ▪Australia is among 45 countries facing the proposed higher tariff rate.
- ▪The US Trade Representative stated that the failure to address forced labour is unacceptable and creates an unlevel playing field for American workers.
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Australia faces proposed 12.5pc US tariff over forced labour crackdownBy Audrey CourtyTopic:TradeWed 3 Jun 2026 at 8:36pmWed 3 Jun 2026 at 8:36pmWed 3 Jun 2026 at 8:36pmThe US proposal came ahead of the July 24 expiry of a temporary 10 per cent tariff imposed by the Trump administration. (Reuters: Carlos Barria)In short:Australia could face a new 12.5 per cent US tariff under a Trump administration proposal targeting countries accused of failing to stop imports linked to forced labour.The Australian government says any tariffs on its exports are "unjustified" and inconsistent with the free trade agreement, adding it has world-leading laws to combat forced labour.What's next?The tariffs would not take effect immediately.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at ABC News (Australia).