Donald Trump hits Australian exports to US with new higher trade tariff over claims of ‘forced labour’

Australia’s trade minister, Don Farrell, says tariff regime is unjustified and inconsistent with free trade agreement with US

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Donald Trump has hit Australian exports with new trade tariffs, claiming the country is not doing enough to combat forced labour, but the Albanese government has demanded he remove them immediately.

The United States announced on Friday morning (AEST) that many Australian exports now attract a new 12.5% tariff as part of a broader regime affecting dozens of countries. However the Albanese government says Australia’s three largest export categories – including beef and gold – will avoid the tariff hit.

In a statement, the US trade department said Australia was on a list of 54 economies it deemed as having “failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor”. Other countries facing a 12.5% tariff include Brazil, China, Egypt, Israel, Japan, New Zealand, Norway, Russia and Singapore.

Economies on a separate list – including the UK, India, Indonesia, Canada and Mexico – will be subject to a lower 10% tariff after the US claimed they had only failed to “enforce” forced labour prohibitions.

Friday’s news followed through on an earlier threat from the Trump administration to level such tariffs, which came after the US supreme court earlier this year struck down Trump’s 10% global tariffs.

Trump had responded to that court ruling by immediately announcing temporary trade sanctions, which were due to expire today.

Australian government sources had previously told Guardian Australia they believed the forced labour-related tariffs had been levelled as a replacement for the tariffs struck down by the courts.

US congresswoman Linda Sánchez, a California Democrat, has denounced the pretext for the new tariffs as a sham.

“President Trump isn’t serious about combating forced labor. He’s trying to make an end-run around the Supreme Court and Congress to reimpose his illegal tariffs,” Sánchez wrote on social media.

The American trade action document claims “the United States is the only country in the world to adopt, and effectively enforce, a ban on imports made with forced labor”.

“President Trump is asking all trading partners to join the United States in eliminating forced labor from global supply chains.”

In total the tariffs apply “to the top 60 U.S. trade partners covering 99.4% of U.S. imports”, according to a trade department statement.

The Australian trade minister, Don Farrell, immediately called for the US to change course.

“These tariffs are unjustified, inconsistent with our free-trade agreement and should be removed,” Farrell said.

“Australia’s measures to combat forced labour and modern slavery are among the strongest in the world and we are recognised globally, including in the US, for our leadership.”

On the ABC’s Afternoon Briefing program, Farrell said has previously had “acrimonious” talks with the US trade chief, Jamieson Greer, over tariffs.

“The idea that the Americans should impose this tariff … is just crazy to be honest with you,” he said.

“And the idea that India or Pakistan has a better regime, in terms of modern slavery, than Australia is simply incorrect.”

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The deputy prime minister, Richard Marles, told ABC radio the US actions “make no sense”.

“Forced labour is definitely something which needs to be combated around the world, so we support that objective,” he said. “But we have laws, which are amongst the strongest in the world, and we’ve been making that point to the Trump administration.”

The US trade action document that sets out the new tariffs includes exemptions for a range of goods including beef; agricultural products such as vegetables and fruits; aircraft parts; certain coal, oil, mineral and chemical products; some metal and steel products; timber products; and machinery.

The shadow trade minister, Matt Canavan, claimed the Albanese government had “failed” exporters by not securing lower tariffs, like the UK or Canada.

“Australia is subject to a 12.5% tariff rate, the same rate as Russia, China and Venezuela,” the Nationals’ leader said.

Canavan said the government had “failed to take meaningful action against forced labour in international supply chains, despite years of warnings”.

The Australian Chamber of Commerce and Industry’s chief executive, Andrew McKellar, described the move as a “ludicrous decision” and “completely unjustified”.

The Business Council of Australia’s head, Bran Black, said the US trade chief’s finding rests on a “narrow claim” without “identifying a single company, enforcement failure, or quantified trade impact”.

The National Farmers’ Federation’s chief, Michael Guerin, said the industry was “profoundly disappointed”.

“Rather than moving back towards the free and fair trading arrangements that have served both our countries well for two decades, the United States has chosen to further increase barriers to trade, despite Australia’s longstanding record of high standards and responsible trade,” he said.

The action, as it pertains to Australia specifically, states that after an investigation, “the Trade Representative has determined to impose 12.5 percent tariffs on products of Australia” except for a limited number of exemptions.