US proposes fresh tariffs on Australia

The United States has proposed a fresh 12.5% tariff on Australia after the Office of US Trade Representative alleged Australia had failed to stop goods made with forced labour from entering markets.

The Trump administration said Australian government policies and practices had failed to enforce a ban on slavery, which made it difficult for US businesses to compete.

"The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable.  This creates a dynamic where American workers are forced to compete globally on an unlevel playing field," US trade ambassador Jamieson Greer said.

"We will no longer tolerate this disparity.  Some trading partners have taken initial steps to prevent the importation of forced labour goods, including through USMCA and commitments in Agreements on Reciprocal Trade.  However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labour globally."

When questioned about the report and potential new tariffs, Treasurer Jim Chalmers slammed the allegations.

"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," Chalmers said.

"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."