The Trump administration has increased its tariff on Australia to 12.5 per cent, citing forced labour concerns, with 59 other countries getting a similar treatment.
Australia originally had a 10 per cent tariff imposed on the country since February this year, with that policy set to expire.
The Australian Government has demanded that this tariff be removed immediately.
The Australian Trade Minister Don Farrell called the increased tariffs “unjustified”, and inconsistent with existing free trade agreements.
“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,” he shared.
The Office of the United States Trade Representative issued its own media release, saying this result followed investigations, including two rounds of public hearings, of more than 2,100 public comments and engagement with its trading partners.
“President Trump recognizes that decades of moral suasion have not eradicated forced labor from global supply chains,” ambassador Jamieson Greer said. “The United States has had a forced labor import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same.
“Today’s action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere. I am encouraged by the trading partners who have moved quickly to adopt forced labor import prohibitions, and look forward to ensuring their effective enforcement.”
The measures come as the Australian Government is preparing to upgrade its Modern Slavery Act, including strengthening Australia’s modern slavery laws with a new criminal offence where companies with an annual consolidated revenue over $100 million fail to prevent modern slavery in their supply chains.
That comes as more than 97 per cent of clothes sold in Australia are made overseas, with many major companies continuing to find incidences of modern slavery occurring in overseas factories.
Across the other 59 countries impacted, this includes the likes of China, the United Kingdom and several European countries, as well as New Zealand.
The United Kingdom, alongside a dozen other countries including Canada, India and Malaysia, will have a 10 per cent tariff on goods.
Other countries, including Australia, China and New Zealand, will be imposed with a 12.5 per cent tariff.