The Trump administration has proposed a 12.5% tariff on all Australian exports to the US over claims of forced labour imports. The US claims that Australia has no effective prohibition on forced labour imports, which creates unfair competition for American workers.
Australian exports to the US in 2025 were valued at $48.5 billion. The tariff will make Australian goods more expensive and effectively uncompetitive. Already, Australian exports to the US have a 10% baseline surcharge.
An investigation by the United States Trade Representative found that Australia failed to impose and effectively enforce prohibitions against forced labour imports. Australia is among 54 countries investigated and hit with the same 12.5% tariff.
Australia has a robust and comprehensive legislation on forced labour and modern slavery. The proposed tariff has been described as unwarranted, unjustified, and inconsistent. Australia continues to advocate against forced labour through diplomatic channels.
