PM says Australia has 'ideological disagreement' with US after it reveals anti-slavery tariff

Lead

Prime Minister Anthony Albanese has said Australia and the United States are at an "ideological disagreement" over trade, after Washington proposed a 12.5 per cent tariff on Australian imports citing concerns about forced labour. Mr Albanese defended Australia's modern slavery protections and called any tariff on Australian exports "unjustified and inconsistent" with the free trade agreements between the two allies.

The US has proposed the higher tariff on imports from more than 50 countries, alleging they have failed to take sufficient action to prevent slavery and forced labour. Australia is among the countries facing the largest proposed increase, though the measure remains subject to a consultation process.

Coverage Comparison

Reports from the ABC detail the political and diplomatic responses to the tariff proposal. Prime Minister Albanese told the ABC there was an "ideological disagreement" between the two sides, noting that the "United States administration has broken with what was a decades-long understanding that tariffs are not positive for the country that is imposing them." He argued that tariffs "increase the costs of goods and services in the country that is applying them to its consumers" and that "free trade is in the interests of the global economy."

Trade Minister Don Farrell met with his US counterpart, Jamieson Greer, on the sidelines of an OECD meeting in Paris, where he told Mr Greer the tariffs were "unjustified". Mr Greer, who is also the US ambassador to Australia, argued that the alleged failure to ban products produced with forced labour created a "dynamic where American workers are forced to compete globally on an unlevel playing field."

Australia's new ambassador in Washington, Greg Moriarty, who replaced Kevin Rudd, said he would "robustly" push back on the "extremely disappointing" tariff proposal. In an interview with the ABC, Mr Moriarty said he was "talking to Australian business about how we can work together to make Australia's case against such a measure." He also said Australia was working on a submission to the Office of the US Trade Representative.

Key Claims

• The US proposed a 12.5% tariff on Australian imports, citing concerns about forced labour, as reported by the ABC.
• Trade Minister Don Farrell met with US Trade Representative Jamieson Greer to discuss the proposed tariffs, according to ABC reports.
• Prime Minister Anthony Albanese defended Australia's modern slavery protections and said the proposed tariffs were "unjustified and inconsistent" with free trade agreements, as quoted by the ABC.
• The new tariff would replace the existing 10% global tariff, which expires on July 24, 2026, according to ABC reporting.
• Australia's new ambassador in Washington, Greg Moriarty, said he would "robustly" push back on the tariff proposal, as reported by the ABC.
• Mr Moriarty also conceded that the US military shipbuilding program was "not where they want it to be", but said he had been reassured by strong bipartisan support for the AUKUS plan to provide Australia with nuclear-powered submarines, according to ABC reporting.
• Opposition Leader Angus Taylor described the tariffs as "rotten" and said they should not be imposed on Australia, as reported by the ABC.

Perspectives

Australian Government

Prime Minister Albanese and Trade Minister Farrell argue the tariff is unjustified and inconsistent with the free trade agreements between Australia and the US. They emphasise that Australia has "robust, comprehensive and world-leading" forced labour and slavery laws, and that the tariff would harm American consumers and the global economy.

US Administration

US Trade Representative Jamieson Greer defended the tariff, arguing that countries' failure to ban products produced with forced labour created an unlevel playing field for American workers. The US investigation into forced labour was widely seen as a mechanism to replace tariffs previously struck down in court.

Opposition

Opposition Leader Angus Taylor called the tariffs "rotten" and said they should not be imposed on Australia, indicating bipartisan concern in Australia about the proposed measure.

Australian Ambassador to the US

Greg Moriarty said he would "robustly" engage with the US process and was working with Australian businesses to make the case against the tariff. He described the proposal as "extremely disappointing" but expressed optimism about the broader AUKUS partnership, noting President Donald Trump's warm comments about Australia and Prime Minister Albanese.