Trump Expands Tariffs, Australia Faces 12.5% Levy
Synopsis
The White House imposed new tariffs on imports from 60 trading partners, including a 12.5% duty on Australian exports.
Australia joins about 60 of the world's trading partners to be subject to new import tariffs, after the White House announced a new trade package, which imposes a 12.5% duty on Australian imports to the United States.
The actions will be used to curb imports tied to forced labor and boost implementation of U.S. trade policy, the Trump administration said, while imposing varying tariffs on the economies involved.
The ruling paves the way for Australia to join countries such as China, Japan, South Korea, New Zealand, Singapore and Switzerland in the higher tariff band.
Under the same policy framework, a separate group, which includes the European Union, Canada, Mexico, the United Kingdom, Brazil and Israel, will be imposed a 10% tariff.
Australia Included Despite Free Trade Agreement
Despite the fact that Australia and the United States have been trading under the Australia-United States Free Trade Agreement (AUSFTA) since 2005, the new duty is in effect. Australia sends a wide variety of products to the U.S., such as pharmaceuticals, medical products, wine, beef and machinery and specialised manufactured equipment.
The Australian Bureau of Statistics (ABS) found that the U.S. continues to be Australia's biggest two-way trading partner and largest source of foreign investment. The bilateral trade in goods and services in 2024–25 reached A$105 billion, indicating the commercial strength of the two economies.
Government Rejects Decision
Prime Minister Anthony Albanese stated that the tariff decision was not warranted, and that Australia has robust protections for workers and it has clear and transparent trade practices. The Federal Government will keep in touch with US officials and will review the impact on Australian exporters.
The tariffs will help to decrease the use of forced labor in supply chains and promote fairer trading practices, the White House said.
The measures extend the administration's current trade policy practice of using tariffs in several regions, impacting companies in manufacturing, agriculture and industrial exports which require access to the United States market.
Source: Capital Brief
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
