Australia Hit With 12.5 Percent US Tariff Over Forced Labour Concerns

U.S. President Donald Trump addresses the nation from the East Room of the White House in Washington, DC, on July 16, 2026. Saul Loeb/Pool-Getty ImagesThe United States government has announced a 12.5 percent tariff on Australian imports due to concerns over the use of forced labour.The announcement was made on July 23 (U.S. time) by the Office of the U.S. Trade Representative and took effect immediately.The United States first warned Australia on June 3, when the Trump administration proposed raising tariffs on Australian imports from 10 to 12.5 percent over concerns about forced labour in the country’s supply chains—a move the Albanese Labor government called “unjustified.”Australia is one of 60 nations subject to tariff increases to 10 or 12.5 percent, with certain products exempt.The U.S. administration said nations that had made some effort to stamp out forced labour practices would receive the 10 percent tariff, while 12.5 percent was reserved for those who had not.“The United States is the only country in the world to adopt, and effectively enforce, a ban on imports made with forced labour,” the trade representative’s office said.“President Trump is asking all trading partners to join the United States in eliminating forced labour from global supply chains.“President Trump is tackling modern-day slavery at its source by requiring our trading partners to enact and enforce import bans to ensure products made by workers under such horrifying conditions are no longer traded in global commerce.”The U.S. government also noted that it had prohibited import of goods made with forced labour for close to a century.“Despite longstanding international consensus that this practice must be eliminated, the prevalence of forced labor persists worldwide and has even escalated in recent years,” the trade representative’s office said.The announcement comes just over a week after the Australian government announced it was introducing a new criminal offence targeting modern slavery in supply chains and would require large businesses to demonstrate they had taken steps to prevent forced labour.Deputy Prime Minister Richard Marles said the Australian government was disappointed by the new tariff.“We don’t want to see increases in tariffs. We want to see freer trade and more trade flows between Australia and the United States,” he told ABC Radio.“Grounding this on the basis of forced labour … [it is] definitely something which needs to be combated around the world.“We support that objective. But we have laws which are amongst the strongest in the world, and we’ve been making that point to the Trump administration.”According to the Global Slavery Index, around 50 million people lived in conditions of slavery worldwide in 2021.“Each day, people are tricked, coerced, or forced into exploitative situations that they cannot refuse or leave,” the organisation said.“Each day, we buy the products or use the services they have been forced to make or offer without realising the hidden human cost.”Nations with the highest number of slaves are listed as North Korea, Eritea, Mauritania, Saudi Arabia, Turkey, Tajikistan, United Arab Emirates, Russia, Afghanistan and Kuwait.“Governments have a central role to play by enacting legislation, providing safety nets for their population and pursuing criminals who participate in these hideous crimes,” the organisation said.The Epoch Times has contacted the Department of Foreign Affairs and Trade for comment.