US Imposes 12.5 Per Cent Tariff on Australian Goods

The Federal government of the United States increased tariffs on Australian products from 10 per cent to 12.5 per cent on July 24, 2026. The action followed a US Trade Representative review concluding that 60 countries, including Australia, failed to sufficiently address forced labour. While 17 countries, including Canada and the United Kingdom, received a flat 10 per cent rate, Australia was placed in the higher category.

The new tariffs primarily impact exporters of wine, lamb, mutton, and goatmeat, though beef, gold, energy, and minerals were exempted. US Trade Representative Jamieson Greer defended the move as a means to correct human rights abuses and distortive trade practices, claiming the tariffs are a success in turning the U.S. economy around.

The Australian government condemned the decision as unjustified and inconsistent with the existing free trade agreement. Deputy Prime Minister Richard Marles and Trade Minister Don Farrell asserted that Australia maintains one of the strongest legal regimes in the world to combat modern slavery. The Australian embassy in Washington lodged a formal written objection to the measures. Tim Ryan, Chief Executive of the Australian Meat Industry Council, argued that the decision ignored Australia's robust labour policies and warned that increased costs would eventually burden American consumers.