Trump slaps 12.5% tariff on Australian exports over forced labor claims

The United States has imposed a 12.5% tariff on a wide range of Australian exports, accusing the country of failing to adequately combat forced labor in global supply chains. The measure, announced Friday, affects dozens of nations but spares Australia’s top exports—beef, gold, and copper. Trade Minister Don Farrell immediately demanded the tariffs be withdrawn, calling them unjustified and a violation of the bilateral free trade agreement.

New tariffs follow Supreme Court setback

The latest trade action comes after the US Supreme Court struck down an earlier 10% global tariff imposed by President Donald Trump. The administration responded by introducing temporary trade sanctions, which were set to expire, and has now replaced them with the forced-labor-related levy. Australian government sources believe the new tariffs are a direct substitute for the earlier ones that were invalidated by the courts.

The US Trade Department listed Australia among 54 economies it claims have “failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.” Other countries facing the same 12.5% rate include Brazil, China, Japan, New Zealand, and Russia. A separate group, including the UK and Canada, received a lower 10% tariff for only failing to “enforce” prohibitions.

Australia pushes back, cites strong anti-slavery laws

Farrell argued that Australia’s measures to combat forced labor and modern slavery are among the world’s strongest and are internationally recognized. “These tariffs are unjustified, inconsistent with our free-trade agreement, and should be removed,” he said in a statement. At a press conference, he noted that Australian exports to the US have actually risen since Trump’s earlier “liberation day” tariffs and expressed confidence that major commodities would continue to flow tariff-free because they were not covered by the new levies.

Deputy Prime Minister Richard Marles called the US actions “nonsensical,” saying Australia supports the goal of eliminating forced labor but already has robust laws. “We have laws which are amongst the strongest in the world, and we’ve been making that point to the US,” Marles told ABC radio.

US justification questioned by lawmakers

US Congresswoman Linda Sánchez, a California Democrat, denounced the pretext for the 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,” she wrote on social media. The US trade document claims America is the only country that effectively enforces a ban on forced labor imports, and that Trump is asking trading partners to join that effort.

The tariffs apply to the top 60 US trade partners, covering 99.4% of US imports, according to the Trade Department. Australian officials say they will continue diplomatic efforts to have the tariffs removed, emphasizing that forced labor is a global issue that requires cooperation, not punitive measures against allies.

What comes next

The immediate impact on Australia’s economy is expected to be limited due to the exemptions for key exports. However, the broader trade relationship faces new uncertainty. The Albanese government has vowed to press its case through diplomatic channels and may consider retaliatory measures if the tariffs remain. The dispute also highlights the fragility of global trade rules under the Trump administration, which has frequently used tariff threats as a tool of foreign policy. For now, Australian exporters of non-exempt goods will face higher costs, and the government will seek to clarify whether the forced labor claim is based on specific incidents or broader allegations.