Australia dodges tariff increase as Trump keeps rate at 10 per cent

3 months ago 24

Washington: Australian goods will continue to be subject to a US tariff of 10 per cent after President Donald Trump maintained the current “baseline” rate – despite earlier threats to hike the levy to 15 or 20 per cent.

Trump issued an executive order on Thursday night, Washington time, confirming new tariff rates for several trading partners following “deals” struck with their leaders, as well as revised tariffs for a number of other countries.

the “reciprocal tariffs” announced on April 2 have been replaced with different rates.

Australia received the lowest rate, 10 per cent, when the so-called reciprocal tariffs were announced on April 2. Australia was not named among the changes on Friday (AEST), and a White House fact sheet confirmed any countries not on the new list would remain on 10 per cent.

Australian officials also confirmed the rate would remain at 10 per cent – the same as the United Kingdom.

White House officials indicated the administration was still open to compromise if countries removed trade barriers and came to Trump with a proposed deal. The new tariffs are set to take effect in seven days.

Prime Minister Anthony Albanese’s office was contacted for comment. The Australian government opposes the tariffs at any level and says true reciprocity would mean zero tariffs from Washington, given the existing free trade deal between the two countries.

Although the rate will remain at 10 per cent, several Australian industries stand to be impacted by the tariffs, including beef and other meats, gold and pharmaceuticals.

The so-called “reciprocal tariffs” are separate to sector-specific tariffs of 50 per cent on steel, aluminium and copper, which also remain in place.

There is also a legal cloud hanging over the reciprocal tariffs. In May, the Court of International Trade in New York found they were unlawful, as Trump had exceeded his authority by imposing them using emergency laws.

The administration’s appeal was heard in Washington on Thursday (Friday AEST) before a panel of judges who expressed scepticism at times about the case presented by the government’s lawyers.

More to come

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