WASHINGTON, D.C. — The Trump administration is considering imposing a 12.5% tariff on Australia for allegedly failing to prevent imports of goods made with forced labor. U.S. Trade Representative Jamieson Greer listed Australia among 54 economies that “failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor.”
Greer said the failure of major trading partners to address forced labor imports is “unacceptable” and creates an “unlevel playing field” for American workers. He added, “We will no longer tolerate this disparity.” A U.S. trade representative report stated the investigation found that Australia’s “acts, policies and practices... related to the failure to impose and effectively enforce a forced labor import prohibition are unreasonable and burden or restrict U.S. commerce.”
The report summarizing the findings contained no specific details about Australia’s enforcement gaps. Six additional countries were found to have failed to properly police a prohibition on forced labor imports and face a 10% tariff rate. The 60 economies subjected to the U.S. trade review account for 99.4% of all imports to the U.S., according to the trade representative’s report.
The Australian federal government sought urgent clarification from U.S. officials about the proposed tariff. A spokesperson for Australian Trade Minister Don Farrell said Australia has “robust, comprehensive and world-leading legislation” addressing forced labor and modern slavery. The spokesperson added that tariffs on Australian exports would be “unjustified and inconsistent with our free trade agreement” and that Australia considers such measures “unwarranted.”
The U.S. has invited feedback on the proposed tariffs until 6 July, allowing Australia to seek an exemption. The proposed action follows the U.S. Supreme Court’s decision earlier this year striking down Trump’s 10% global tariffs. After that ruling, Trump announced temporary trade sanctions set to expire on 24 July.
Freya Dinshaw, associate legal director at the Human Rights Law Centre, said Australia is “indeed vulnerable” if the U.S. penalizes countries that have not taken sufficient steps to prevent forced labor in global supply chains. She added that “the alarm bells have been ringing for a long time” about the risk of forced labor goods entering Australian stores.