Trump administration proposes a 12.5 per cent import tariff on all goods from Australia

By KYLIE STEVENS, SENIOR BREAKING NEWS REPORTER, AUSTRALIA Published: 05:33, 3 June 2026 | Updated: 05:54, 3 June 2026 The Trump administration has proposed a 12.5 per cent tariff on all Australian exports to the United States, in a move aimed at cracking down on goods linked to forced labour.  This comes after an investigation by the US Trade Representative examined 60 countries and concluded that none had sufficient measures in place to prevent the import of goods made with forced labour.  As a result, the US is proposing new tariffs on imports from all of these countries, including Australia.  The proposal outlines two possible tariff rates:  Australia falls into the second category and would therefore face the proposed 12.5 per cent tariff. In 2025, Australia exported more than $48.5 billion worth of goods and services to the US. Its largest single export is beef, worth around $4 billion annually.  The proposed 12.5 per cent tariff would increase the cost of Australian goods in the US, making them more expensive for American consumers and importers.  The Trump administration has proposed a 12.5 per cent tariff on all Australian exports to the US. Pictured is Prime Minister Anthony Albanese with US President Donald Trump) Australia's largest single export to the US is beef, worth around $4 billion annually The higher rate will also be imposed on US major trading partners Japan and South Korea, along with China, India and the UK. 'The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,' USTR Ambassador Jamieson Greer said. 'This creates a dynamic where American workers are forced to compete globally on an unlevel playing field. 'We will no longer tolerate this disparity. Some trading partners have taken initial steps to prevent the importation of forced labor goods, including through USMCA and commitments in Agreements on Reciprocal Trade. 'However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labor globally.' The USTR also proposes a textile mechanism that would allow for a certain volume of apparel and textile imports from certain economies to enter the US at a reduced tariff rate.  The proposed tariffs do not take effect immediately and will be subject to public comment and review. The USTR has requested written comments by July 6, followed by public hearings. The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.