The Trump administration has threatened a new tariff on Australia and a host of other countries for allegedly failing to prevent slavery in export supply chains.
The Albanese Government has insisted the 12.5per cent “Slave Labour” Tariff is “unjustified” and “unwarranted”.
Australia was among about 60 other nations, including Canada, the European Union, Mexico, and Britain, to be accused of failing to block imports produced by forced labour.
Other nations listed included Ecuador, Indonesia, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, and Taiwan.
Donald Trump has claimed that Tuesday’s proposal followed an investigation into unfair trade practices conducted by the US Trade Representative Jamieson Greer.
Speaking on ABC Radio on Thursday morning, Prime Minister Anthony Albanese labelled the tariffs as unwarranted and insisted they would ultimately hurt US consumers.
“We continue to use every opportunity that we have to advocate that US tariffs imposed on Australia are unwarranted, and of course, our view is that tariffs are actually a penalty on consumers in the United States,” he told ABC Radio.
“We produce very good products here in Australia that are in demand in the United States, but importantly… the United States has a trade surplus with Australia that it’s enjoyed for decades, and we continue to advocate for Australia’s national interests.”
The move comes as the Trump administration attempts to bring back the emergency tariffs that the US Supreme Court declared invalid back in February.
The administration has proposed that 45 countries, including Australia, would face an extra 12.5 per cent tariff under Mr Trump’s plan.
While 15 other countries with forced‑labour import bans — whether fully implemented, pledged, or partial — would incur an additional 10 per cent tariff.
Treasurer Jim Chalmers also argued the move was inconsistent with Australia’s free trade agreement with the US.
“We maintain the position that these tariffs are unwarranted, they’re unjustified, and they’re inconsistent with our free trade agreement with the US, and we’ve made that case repeatedly,” he told reporters outside Parliament on Thursday.
“Now, when it comes to the specifics of the modern slavery laws, we’ve got world-leading legislation in place already to combat the evils of modern slavery.
“This is the issue that the Trade Representative has raised.
“So we will continue to take every opportunity that we can to stand up for Australian exporters and to stand up for the workers and businesses in those industries, who would be right to consider these tariffs as unjustified, unwarranted, unnecessary, and inconsistent with our free trade agreement.”
Opposition leader Angus Taylor said the tariffs weren’t consistent with the act of a friend or ally.
“Well, they’re wrong. There shouldn’t be tariffs like these imposed on Australia, and the United States shouldn’t do it,” he said.
“They’re a great friend, and they shouldn’t do it.
“We fought with them in every war, every major war. They shouldn’t be imposing tariffs on (Australia).”
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