Australian beef has been excluded from the latest punitive tariffs imposed on imported Australian products. The US government imposed a permanent 12.5% tariff on a wide range of Australian goods including lamb and goatmeat.
The Trump administration has accused Australia of failing to enact forced labor policies in its supply chains. The accusation is raised since Australia imports a vast majority of products from China.
Exemptions have been granted to beef, copper, gold and pharmaceuticals. The exemptions for Australian beef are granted since US domestic beef production is severely hampered. Both retail and wholesale beef prices in the US are at record highs.
Australian lamb and goatmeat are subject to the new 12.5% tariff. The tariff hike comes closely after the safeguard investigation into Australian lamb imports.
Australian red meat producers have condemned the tariffs while the government vehemently disputes the forced labor claim. In the year ending June 30, the US was Australia’s largest beef export market (493,000 tonnes), largest lamb export market (85,200 tonnes), and largest goatmeat market (30,776 tonnes).
The Federal Trade Minister, Don Farrell, has termed the tariff as unfair and unjustified as well as inconsistent with Australia’s free trade agreement with the US.
