Australia remains uncertain about how a new round of proposed US tariffs would apply to Australian exports, with Trade Minister Don Farrell saying Washington has not provided clear answers.
The latest announcement from the Trump administration proposes a 12.5% tariff on countries deemed not to be doing enough to combat modern slavery. Farrell said Australia has formally objected to the proposal.
Speaking about discussions with US Trade Representative Jamieson Greer in Paris last week, Farrell said he sought clarification on whether the new tariff would replace the existing 10% baseline tariff introduced under President Donald Trump’s “Liberation Day” trade measures or be added on top of it.
“That was the first question I asked my counterpart, Jamison Greer, and I think, based on his answer, there is a possibility that for a couple of days the tariffs might overlap, but they don’t intend to enforce that lap,” Farrell said.
Farrell said Australia’s position remains that no tariffs should apply because the two countries have a free trade agreement.
“Our position to the Americans is it should be zero. We have a free trade agreement with the United States, which we honor. We don’t apply tariffs to any goods that come in from the United States.”
“We expect the United States to do exactly the same and honor our free trade agreement and apply no tariffs to Australian goods,” he said.