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Jun 03, 2026
Analyzed by Llama- 4 Scout 17B 16E Instruct

Trump threatens 12.5% tariff on Australian imports over alleged slave labour

AI Summary
The US is considering a 12.5% tariff on imports from Australia and 53 other countries for allegedly failing to prevent goods made by slave labour. The move has sparked concern in Australia, with the government disputing the findings.

The US Tariff Threat

Australia is among dozens of countries facing a 12.5% trade tariff from the Trump administration for allegedly failing to prevent imports of goods made by slave labour.

Investigation Findings

The US trade representative, Jamieson Greer, listed Australia among 54 economies that “failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labor” following an investigation into their practices.

  • 54 countries, including Australia, face a 12.5% tariff
  • A further six countries face a lower 10% rate
  • The tariffs are for allegedly failing to prevent goods made by slave labour

Economic Impact

The 60 economies subjected to the review are responsible for 99.4% of all imports to the US, according to the trade representative’s report.

Australia's Response

The federal government was on Wednesday night seeking urgent clarification from US officials about the proposed new trade sanction.

A spokesperson for the trade minister, Don Farrell, disputed the alleged findings, saying: “Australia has robust, comprehensive and world-leading legislation addressing forced labour and modern slavery.”

Future Outlook

The US has invited feedback on the tariffs until 6 July, providing an opportunity for Australia to press the case for an exemption.

The Human Rights Law Centre urged the Albanese government to immediately strengthen modern slavery laws – including banning imported goods produced with forced labour.