Australia will likely be lumped with higher tariffs by the US, as analysts warn the nation doesn’t stand a good chance of negotiating an exemption.
The US has proposed a 12.5 per cent tariff on Australian goods as part of plans for new levies on 60 countries, drawing condemnation from the nation’s political leaders.
The White House said the taxes were in response to inadequate anti-slavery laws, but the move was widely considered to be a work-around after the Supreme Court struck down Donald Trump’s original “Liberation Day” tariffs.
But Australian beef and gold will maintain their exemptions from the US levies.
While Australian diplomats would voice their concerns over the new measures, it would unlikely result in a carve-out, US Studies Centre director of economic security Hayley Channer said.
“The tariffs will most likely apply to us, given so many countries in the group include close US allies such as Japan who have not been made exempt,” she said.
“There’s no real way to negotiate our way out of this.”
Ms Channer said the move signalled to the world Washington remained entrenched in its trade war against China.
“Some of the countries targeted by the new tariffs have the toughest anti-slavery laws in the world,” she said.
“It’s another avenue to steer away countries from Chinese goods.”
Under the changes, two tiers of tariffs would be imposed.
A 12.5 per cent tariff would be applied to 54 nations, including Australia, that the US believes have poor anti-slavery laws.
The remaining six countries would face a 10 per cent levy over what Washington deems is a lack of enforcement.
The changes are expected to come into force late July, when the current baseline 10 per cent tariff expires.
Trade Minister Don Farrell spoke with his US counterpart Jamieson Greer on the sidelines of the OECD ministerial meeting in Paris to make Australia’s case.
A spokesperson for Senator Farrell said the nation had “robust, comprehensive and world leading” laws against forced labour and modern slavery.
“Australia maintains our position that any tariffs on Australian exports to the United States are unjustified and inconsistent with our free trade agreement,” the spokesperson said.
“We continue to use every opportunity to advocate that US tariffs imposed on Australia are unwarranted.”
The tariffs would only push up prices for US consumers, Prime Minister Anthony Albanese said.
“There is an ideological disagreement where the United States administration has broken with what was a decades-long understanding that tariffs are not positive for the country that is imposing them,” he said.
Coalition leader Angus Taylor also blasted the latest trade salvo from the US.
“There shouldn’t be tariffs like this imposed on Australia, and the United States shouldn’t do it ... we fought with them in every war, every major war, they shouldn’t be imposing tariffs on us,” he said.
– AAP
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