US Raises Tariffs On Australia To 12.5% Over Forced Labor Claim

According to Lianhe Zaobao citing Reuters and AFP, the United States has raised tariffs on Australia from 10% to 12.5% on the grounds of forced labor, prompting Australia to say it is disappointed and that the new tariff is “completely unreasonable.” Australian Defense Minister Richard Marles said in an interview with the Australian Broadcasting Corp. on Friday, July 24, that “in our view, this makes no sense at all.” Australian Trade Minister Don Farrell said the U.S. action was wrong, calling the tariffs unreasonable and a violation of the two countries’ free trade agreement, and said they should be withdrawn. The U.S. Trade Representative’s Office said on Thursday, July 23, that the United States will impose tariffs of 10% or 12.5% on 60 countries and regions under Section 301 of the 1974 Trade Act, citing forced labor. Steel, aluminum, motor vehicles and parts are exempt from the new tariffs, along with some food, agricultural products, fertilizer and energy products. An unnamed senior U.S. official said the tariffs took effect at 12:01 a.m. New York time on July 24, or 12:01 p.m. Singapore time the same day, and some cargo already loaded before then is exempt.