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Trade Minister Don Farrell will press the case against US President Donald Trump’s decision to increase the tariff rate on Australian goods from 10 to 15 per cent when he visits the United States this week.
Farrell’s long-planned trip, beginning on Tuesday, has coincided with the aftermath of Trump’s decision to strike back against the US Supreme Court’s rejection of his broader tariff regime by imposing a blanket 15 per cent tariff rate on the whole world.
Farrell said in a statement that Australia had “consistently advocated against these unjustified tariffs”.
“Australia believes in free and fair trade,” he said. “We are working closely with our embassy in Washington to assess the implications and examine all options.”
Trump’s late night announcement of the global tariff escalation, following the legal defeat of his first global tariff in a Supreme Court ruling that found the president did not have the power to impose import taxes unilaterally, has not moved past the stage of a social media post on Truth Social.
A second global tariff has not been issued as an executive order.
Farrell will depart on Tuesday for a previously scheduled trade mission to support the G’Day USA tourism event in Los Angeles, where he is expected to also meet with senior US government officials.
Australia had the lowest baseline tariff rate available under Trump’s previous regime at 10 per cent, though the administration had also negotiated varying deals on different types of imports with a range of countries.
Innes Willox, chief executive of industry representative group AiG, said the tariffs would have mixed consequences for Australian businesses.
“Some will get an immediate advantage, others will miss out, depending on how they trade and who they compete with,” Willox said. “But one experience will be universal, and that is dealing with the consequences of the uncertainty, which is cruelling investment, delaying purchasing decisions and creating unnecessary red tape.
“Almost 20 years ago, the top 20 economies came together to collectively respond to the Global Financial Crisis. The US is host of the G20 this year, and the rules-based trading system needs to be on the agenda. Businesses’ capacity to endure this kind of economic volatility is diminishing.”
CSL, one of Australia’s largest exporters to the United States, was contacted for comment, as were several mining, manufacturing and agricultural groups and companies.
A BlueScope spokesperson said the company didn’t provide running commentary on possible tariff changes. “We’ve been navigating tariffs since the previous Trump administration and we’ll continue to do so,” he said.
Opposition frontbencher James Paterson said Trump’s tariffs were contrary to Australia’s free trade agreement with the US and the nation’s long history of friendship with the superpower.
“I would hope that the president would consider an exemption for Australia from that tariff, and I hope that the Albanese government, with their new ambassador, Greg Moriarty, shortly to start in Washington DC, are able to secure that exemption for Australia,” Paterson said.
Canada and Mexico are exempt from Trump’s latest round of tariffs, though the president has also quarrelled with those nations.
Chris Zappone is a senior reporter covering aviation and business. He is former digital foreign editor.Connect via X, Facebook or email.From our partners
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