Australian goods exported to the United States now face a 12.5% tariff, up from the temporary 10% baseline levy that expired today.
The Trump administration's justification: Australia has allegedly failed to stop imports linked to forced labour. The claim comes from a US Trade Representative investigation covering roughly 60 trading partners, including the EU, UK, Japan, China, and New Zealand.
Australian ministers have formally objected, calling the tariff unjustified and saying the findings lack credible evidence. Business groups are reportedly asking Washington to exempt specific import categories.
What this means for ANZ exporters
The tariff hits the second-largest two-way trading partner for Australia. Sectors most exposed: agriculture, resources, pharmaceuticals, and manufacturing.
For sales teams at ANZ exporters, this changes the math on US deals. A 12.5% tariff eats margin or forces pricing conversations with US buyers. Worth noting: some raw materials and produce have limited exemptions, but the regime covers the vast majority of imports.
The new rates took effect at 2pm AEDT today, the same moment the temporary 10% levy expired.
The broader context
This is not an Australia-only issue. The tariff sweep covers 60 economies, with rates varying between 10% and 12.5% depending on the USTR's findings. Trump has argued since June that US producers are disadvantaged when competing against global imports that use forced labour to lower production costs.
US Trade Representative Jamieson Greer called the measure necessary to "correct what is both a human rights abuse and distortive trade practice."
For Australian sales teams selling into the US market, the comp conversation just got harder. The tariff does not change if your product is good. It changes if your pricing can absorb a 12.5% hit or if your US buyers will.