Tariff latest: US confirms new 12.5% tariff on most Australian goods 

In a memorandum to the United States Trade Representative (USTR), President Trump directed the imposition of Section 301 tariffs on imports from 60 economies, including Australia, based on what the US claims is a failure to impose and effectively enforce prohibitions on imports produced with forced labour. Australian goods will be subject to a new 12.5% tariff unless specifically exempted.  

The USTR says the measure is intended to encourage trading partners to strengthen restrictions on imports produced using forced labour. The new tariffs will come into force at 2:01pm AEST on 24 July, replacing the temporary 10% tariff. 

Australia made a formal submission on 6 July to the USTR reiterating its opposition to US tariffs arguing that Australia has some of the world’s strongest legislation to tackle forced labour.  

What this means for Queensland exporters: 

• Most Australian goods exported to the U.S. will be subject to the additional 12.5% tariff unless exempt. 
• The USTR exemption schedules cover specified tariff lines, including pharmaceuticals, civil aircraft and parts, semiconductors, motor vehicles and parts, aluminium, steel, copper products, many raw materials, critical minerals and selected agricultural products (including beef).
• The commercial impact will vary depending on a product's U.S. tariff classification, existing duties and whether an exemption applies.

Federal Trade Minister Don Farrell has responded to the tariffs in a statement to media saying: 

"We continue to maintain that these tariffs are unjustified. Australia is a country that deals with the issue of modern slavery seriously, …, we will continue to argue very strongly for the removal of these tariffs." 

We are closely monitoring developments and will provide further updates as more information becomes available. 

Please see the Austrade Go Global Toolkit for additional information on the support for Australian businesses impacted by the US tariff changes. 

Previous TIQ insights on tariff impositions and changes is available here.