The US has raised tariffs on Australian goods again, citing forced labour rules Canberra says don’t apply here.
New US tariffs on Australian exports took effect on 24 July, after the US Trade Representative made a final determination applying a 12.5% tariff to imports from Australia and 37 other economies, as part of a broader Section 301 action targeting 60 economies accused of failing to effectively ban goods made with forced labour.
A further 17 economies face a lower 10% rate, on the basis they already have import bans or partial regimes addressing the issue, or have committed to introducing them under a trade agreement with the US.
What changed and why
The tariffs replace the 10% global Section 122 Temporary Import Surcharge, which expired at the same moment the new rate came into force, meaning the two do not stack. Existing product exemptions carry over. Australia and most other US trading partners also remain subject to a separate set of Section 232 “national security” tariffs, covering goods including steel, aluminium, timber, automobiles and semiconductors, with rates ranging from 10 to 50%. A 100% tariff on certain pharmaceuticals is due to take effect in September.
Who gets hit hardest
The impact on Australian agriculture looks uneven. Lamb, mutton and goatmeat exports face the greatest exposure to the new tariff, while major beef categories have been placed on an exemption list issued by the US Trade Representative, sparing Australia’s largest protein export from the increase.
Industry figures argue the measure misreads Australia’s regulatory record. According to comments reported by Farm Weekly, an industry representative described the tariff as “unjustified” and inconsistent with the Australia-US Free Trade Agreement, arguing it overlooked Australia’s “robust” framework for addressing modern slavery and forced labour risk in supply chains. The tariff decision, they said, followed investigations and hearings through 2026 that dismissed the case Australia put forward in defence of its labour standards, standards the US government has itself previously rated favourably. They added that the higher tariff would ultimately raise costs for American importers, retailers and consumers, not just Australian exporters.
Canberra’s response
Trade Minister Don Farrell rejected the premise of the tariff directly. “We believe that amongst all of the countries in the world Australia does take the issue of slavery, modern slavery, seriously, and will continue to do that,” he told reporters. He went further in comments to Sky News, calling the tariff increase, from 10% to 12.5%, “an extremely disappointing decision” and confirming Australia would keep pressing Washington to remove it. “We say that these tariffs are unjustified and we call on the United States government to reverse them,” he said.
Australia isn’t alone in objecting. New Zealand, also facing a 12.5% rate, and Japan, hit with the same increase despite an earlier understanding it wouldn’t face further tariffs on top of existing arrangements, have both raised similar concerns with Washington.
What exporters should do
For businesses shipping to the US, the practical detail matters as much as the politics. All goods valued at US$800 or less lost their de minimis exemption earlier this year and now face specific tariff rates regardless of value. Exporters are also advised to watch for interactions between tariff regimes, since goods manufactured partly in other economies facing higher rates could see flow-on effects on their own tariff exposure.
The Australian government continues to advocate for the removal of the tariffs and is working through the Department of Foreign Affairs and Trade and Austrade to assess sector-specific impacts. Austrade’s Go Global Toolkit offers exporters guidance and recorded briefings on the changes, and businesses with specific questions are encouraged to engage a licensed customs broker or contact US Customs and Border Protection directly. Refunds relating to earlier IEEPA tariffs, separate from this latest action, have been processing through US Customs since April.
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