On 26 July 2026 Reuters reported that Australian Prime Minister Anthony Albanese announced that his government will raise the United States’ newly‑imposed 12.5% tariff on Australian goods directly with President Donald Trump. The tariff was introduced on Friday as part of a broader U.S. trade action affecting 60 trading partners; 38 economies, including Australia, received a 12.5% additional duty, 17 economies were assigned a 10% rate, and five economies were placed under mixed arrangements based on their existing tariff treatment. The measures are authorized under Section 301 of the U.S. Trade Act and are justified by Washington as a response to perceived failures by trading partners to prevent goods produced with forced labour from entering U.S. markets and supply chains.
Australia has already lodged objections to the tariff and Albanese described the duty as “unjustified,” stating that Australia maintains strong modern‑slavery protections and is strengthening its enforcement framework. Under Australia’s Modern Slavery Act, entities with annual consolidated revenue of at least A$100 million must annually report on slavery‑related risks in their operations and supply chains and on the steps taken to mitigate those risks. The government is reviewing its supply‑chain enforcement regime and is considering tougher penalties for non‑compliant companies.
The Australian government warned that the higher tariff could increase costs for exporters with significant exposure to the U.S. market, specifically mentioning producers of building materials, healthcare products, wine and other manufactured goods. Mining and energy firms were noted as closely monitoring the situation for clarification on which commodities or products might qualify for exemptions, as the White House order indicates that some products are excluded from the additional duties.
Overall, the Australian administration intends to address the tariff “at every level in the Australia‑U.S. relationship,” seeking its removal while reinforcing domestic anti‑forced‑labour legislation and enforcement.