US to impose new tariffs on 60 trading partners as forced-labour claims drive policy shift

Australia will face a 12.5% tariff on exports to the United States from later today, under a wider package of new import duties affecting around 60 trading partners. The measures are due to take effect at 12:01am Friday local time in Washington, as a temporary 10% tariff expires. Some countries, including the United Kingdom, will be subject to a lower 10% rate.

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The Trump administration says the tariffs are linked to a trade investigation into forced labour and slavery, and that the United States is acting to protect American companies from unfair competition. The new duties follow earlier tariff measures that were invalidated by the Supreme Court, prompting the administration to seek other legal routes to keep import pressure in place. Australia had asked Washington not to proceed and argued in a formal submission that it already has strong laws against forced labour.

The move is significant because it affects a broad group of major economies at once, including the European Union, Canada, Japan and India, as well as Australia and the UK. It also raises the prospect of fresh friction in trade relations at a time when the administration is trying to preserve tariff leverage after the court ruling. Analysts cited in the supporting material say the forced-labour investigation may be serving as a way to maintain duties similar to those previously struck down.

The issue matters beyond the immediate tariff rates because it touches on how the United States uses trade policy to pursue wider economic and regulatory goals. US Trade Representative Jamieson Greer said the country has had a forced-labour import ban for nearly a century and should expect trading partners to enforce similar standards. The administration has also argued that it enforces its own import bans on goods made with forced labour more strictly than other countries do.

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For Australia, the tariff is a particular point of tension in a relationship that has generally been close. Its submission to the US said Australia has one of the world's strongest legal frameworks to tackle forced labour and questioned why countries with similar measures would face different tariff treatment. It also pointed to the US Trafficking in Persons Report, which has consistently given Australia the best possible rating, and said Canberra had been working constructively with Washington on trade issues.

What remains unclear is how trading partners will respond and whether the new duties will face further legal or diplomatic challenges. It is also not yet clear how much trade will be covered in practice once exemptions for goods already in transit are taken into account. The tariffs are due to begin as the temporary levy ends, with in-transit goods exempted until 12:01am eastern time on 28 July.

Australia will face a 12.5% tariff on exports to the United States from later today, under a wider package of new import duties affecting around 60 trading partners. The measures are due to take effect at 12:01am Friday local time in Washington, as a temporary 10% tariff expires. Some countries, including the United Kingdom, will be subject to a lower 10% rate.

The Trump administration says the tariffs are linked to a trade investigation into forced labour and slavery, and that the United States is acting to protect American companies from unfair competition. The new duties follow earlier tariff measures that were invalidated by the Supreme Court, prompting the administration to seek other legal routes to keep import pressure in place. Australia had asked Washington not to proceed and argued in a formal submission that it already has strong laws against forced labour.

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The move is significant because it affects a broad group of major economies at once, including the European Union, Canada, Japan and India, as well as Australia and the UK. It also raises the prospect of fresh friction in trade relations at a time when the administration is trying to preserve tariff leverage after the court ruling. Analysts cited in the supporting material say the forced-labour investigation may be serving as a way to maintain duties similar to those previously struck down.

The issue matters beyond the immediate tariff rates because it touches on how the United States uses trade policy to pursue wider economic and regulatory goals. US Trade Representative Jamieson Greer said the country has had a forced-labour import ban for nearly a century and should expect trading partners to enforce similar standards. The administration has also argued that it enforces its own import bans on goods made with forced labour more strictly than other countries do.

For Australia, the tariff is a particular point of tension in a relationship that has generally been close. Its submission to the US said Australia has one of the world's strongest legal frameworks to tackle forced labour and questioned why countries with similar measures would face different tariff treatment. It also pointed to the US Trafficking in Persons Report, which has consistently given Australia the best possible rating, and said Canberra had been working constructively with Washington on trade issues.

What remains unclear is how trading partners will respond and whether the new duties will face further legal or diplomatic challenges. It is also not yet clear how much trade will be covered in practice once exemptions for goods already in transit are taken into account. The tariffs are due to begin as the temporary levy ends, with in-transit goods exempted until 12:01am eastern time on 28 July.

The Trump administration is set to impose new tariffs of 10% and 12.5% on around 60 trading partners, including the European Union, as it moves to keep broad import duties in place. The measures are due to take effect as a temporary 10% global tariff expires, creating a near-seamless shift in US trade policy. Officials said the new duties are being framed as an enforcement response to alleged weak action against forced labour in supply chains.

Senior administration officials said the tariffs will apply to a wide group of economies, including the UK, Canada, Japan, India and Australia, as well as the European Union. The timing is significant because the temporary tariff was introduced after the US Supreme Court struck down earlier "reciprocal" duties imposed under a national emergencies law. The administration then used Section 122 of the Trade Act of 1974 to keep a 10% tariff in place for 150 days, and that period is now ending.

US Trade Representative Jamieson Greer said the United States has had a forced-labour import ban for nearly a century and should expect trading partners to enforce similar standards. A senior official said the new duties are not simply a direct replacement for the expiring levies, despite the similar rates and broad coverage. The official also said the United States enforces its own import bans on goods made with forced labour more strictly than other countries, and that the administration is responding to calls from both Democrats and Republicans to remove forced labour from global supply chains.

The move matters because it affects a large share of US trade relationships at once and could add friction across several major economies. It also shows how the administration is using different legal routes to preserve tariff pressure after the Supreme Court ruling. For exporters, the change may affect pricing, shipping decisions and compliance checks, especially where goods move through complex supply chains.

The policy sits within a wider dispute over how far the United States can use tariffs to pursue trade and industrial goals. Earlier duties were imposed under a national emergencies law in an effort to reduce the US trade deficit, but that approach was blocked by the court. The latest step shifts the legal basis while keeping the broader objective of high import barriers in place.

What remains unclear is how trading partners will respond and whether the new duties will trigger further legal or diplomatic challenges. It is also not yet clear how much trade will be covered in practice once exemptions for goods already in transit are taken into account. The tariffs are due to begin at the same moment the temporary levy expires, with in-transit goods exempted until 12.01am eastern time on 28 July.

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