The United States has increased tariffs on Australian products to 12.5 per cent, citing concerns over forced labour in supply chains.This decision follows a determination by the US trade office that Australia and 59 other countries are not doing enough to eliminate forced labour.

The tariffs will replace the previous 10 per cent rate, which was imposed temporarily after a Supreme Court ruling deemed Trump's 'reciprocal tariffs' unlawful.Australia argued its legal framework against modern slavery is robust, and highlighted its 20-year free trade agreement with the US.However, the US trade office proceeded with the tariffs, aligning with President Trump's directive.The move targets multiple countries, with some facing lower rates.

US Trade Ambassador Jamieson Greer emphasized the need for global partners to adopt stricter forced labour bans, framing the tariffs as both a human rights measure and a trade correction.The policy uses Section 301 of the Trade Act, avoiding the emergency powers Trump previously employed.Exemptions for certain products are included in the order, reflecting ongoing debates over trade practices and human rights enforcement.