Australia facing new tariffs from US over forced labour claims

Australia could be facing new tariffs from the US after it was listed among countries failing to stop imports of goods made by forced labour.

The United States Trade Representative (USTR) issued a statement threatening 10 per cent tariffs on Australia, among other nations.

“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” trade representative Jamieson Greer said in a statement.

“This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.

“We will no longer tolerate this disparity.”

A 98-page report did not go into details about Australia’s supposed infractions.

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“USTR found that Australia has failed to impose and effectively enforce a forced labour import prohibition,” the report stated.

“For the foregoing reasons, the results of this investigation indicate that the acts, policies and practices of Australia related to the failure to impose and effectively enforce a forced labour import prohibition are unreasonable and burden or restrict US commerce.”

Other nations like Japan, New Zealand and Canada had similarly brief explanations.

The 10 per cent tariff would be a blanket tax on Australian imports, the same as Australia faced from Donald Trump’s liberation day tariffs.

Those tariffs were later ruled unlawful and struck down by the US Supreme Court.

While Australia’s 10 per cent rate was at the bottom end of tariffs under the Liberation Day system, this tax would make Australian imports more expensive compared to other nations selling to the US.

But the list of nations cited today was substantial and included many major exporters.

The countries listed are: Algeria, Angola, Argentina, Australia, the Bahamas, Bahrain, Bangladesh, Brazil, Cambodia, Chile, China, People’s Republic of, Colombia, Costa Rica, Dominican Republic, Egypt, El Salvador, Guatemala, Guyana, Honduras, Hong Kong, China, India, Iraq, Israel, Japan, Jordan, Kazakhstan, Kuwait, Libya, Malaysia, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Trinidad and Tobago, Türkiye, United Arab Emirates, United Kingdom, Uruguay, Venezuela, and Vietnam. 

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The Trump Administration is currently dragging its heels on refunding the billions in tariffs ruled unlawful by the Supreme Court.

“Donald Trump tanked the economy and drove up costs across the board with his illegal tariffs. Now he wants to block tariff refunds,” Democratic Senator Ron Wyden said.

“Who’s Trump looking out for? Not you, apparently.”

Yesterday, Swedish furniture giant IKEA sued the government to get its money back.

Nine.com.au has reached out to Australian Trade Minister Don Farrell for comment.