Trump Hits Australia With New 12.5% Tariff Over Forced-Labor Supply Chain Claims, Albanese Calls It Unjustified

What Happened

The Trump administration on Friday imposed new tariffs on goods from 60 trading partners, including Australia, according to Reuters. The move came as a temporary 10% global tariff rate expired.

Australia landed in the 12.5% bracket, one of 38 nations hit at that rate, Reuters reported. Seventeen countries face a 10% tariff, and five face a mixed rate. Washington's stated justification: these countries haven't done enough to stop goods made with forced labor from entering their supply chains.

Prime Minister Anthony Albanese pushed back on the tariffs in an ABC Insiders interview with host David Speers, and again in televised remarks reported by Reuters on Sunday. He called the tariffs "unjustified" and said his government would raise the issue "at every level of the Australia-US relationship," adding, "We've already done so." Asked if he would seek to discuss the issue directly with President Trump, Albanese said "absolutely."

Albanese's Case

Albanese pointed to Australia's existing legal framework as the basis for his objection. "We have very strong provisions on modern slavery," he said, adding that his government is "strengthening those even further by going through the supply chain issues and making sure that, indeed, substantial fines and penalties can be paid if those issues aren't dealt with."

Albanese also argued the tariff is self-defeating for the U.S. "This will lead to higher costs in the United States and undermine the trading relationship that we have with our US friends," he said. He noted the U.S. has run a trade surplus with Australia "for such a long period of time," something he said his government would "continue to point out."

The Other Side of the Ledger

The Trump administration's position, as reported by both Reuters and The Nightly, is that the tariffs target countries broadly failing to curb the trade of goods made with forced labor. The Albanese government has described the tariffs as unjustified and says it wants them removed.