US hikes tariffs on Australia to 12.5% over forced-labour claims

Washington raises levies on Canberra and 59 other nations, citing human-rights failures. Australian exporters face higher costs as exemption efforts intensify.

By Handelsavisen Newsroom · Automated 2026-07-23 21:33 UTC · 1 min read

The United States has increased tariffs on Australian goods to 12.5 per cent, escalating trade tensions between the two allies.

The move follows a determination by the US trade office that Australia, alongside 59 other countries, has failed to take sufficient action to eliminate forced labour in its supply chains.

The new rate represents a 2.5 percentage point increase from the previous 10 per cent levy.

The tariff hike is framed by Washington as a human-rights enforcement measure rather than a traditional trade dispute.

By grouping Australia with dozens of other nations, the US administration signals a broadening of its leverage strategy, using market access as a tool to compel compliance with labour standards.

This approach marks a significant shift in how trade policy is being weaponized for geopolitical and ethical objectives.