Donald Trump Agrees to Consider Australian Tariff Exemptions

President Donald Trump agreed to consider a request from Australia for a full exemption or freeze on tariff increases following a phone call with Prime Minister Anthony Albanese on Thursday night. Australia currently faces a 12.5 percent tariff rate on exports, which increased from 10 percent in July. These duties were imposed by the United States under Section 301 action targeting approximately 60 economies following a probe into failures to prevent forced labor in supply chains.

During the call, Albanese argued for preferential treatment based on Australia's free trade agreement with the U.S., its record on modern slavery, and its status as a key ally. Beyond trade, the leaders discussed the AUKUS submarine deal, specifically the second pillar involving uncrewed undersea vehicles. They reaffirmed that the project delivers benefits for the United States, Australia, and the United Kingdom, despite recent Pentagon admissions that Virginia-class submarine production is below the required annual rate.

The leaders also addressed regional security, agreeing that Iran must not acquire nuclear weapons and discussing a Chinese ballistic missile test in the Pacific from July. The conversation followed confirmation from U.S. Under Secretary of Defense Elbridge Colby that the AUKUS deal is proceeding.