-
Posted by David Sexton
- |
-
24 July, 2026
THE NATIONAL Farmers’ Federation (NFF) says it is “deeply disappointed” in the United States’ decision to impose a new 12.5% tariff on Australian exports, replacing the existing 10% tariff that was set to expire on 24 July.
Media reports stated President Trump is to hit Australian exporters with the higher tariff due to claims of “forced labour”.
In a statement, the US trade department said Australia was on a list of 54 economies it deemed as having “failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labour”.
Other countries facing a 12.5% tariff include Brazil, China, Egypt, Israel, Japan, New Zealand, Norway, Russia and Singapore.
National Farmers Federation chief executive Michael Guerin said the decision was “a step in the wrong direction”.
“Australian agriculture is profoundly disappointed by this announcement,” he said.
“Rather than moving back towards the free and fair trading arrangements that have served both our countries well for two decades, the United States has chosen to further increase barriers to trade, despite Australia's longstanding record of high standards and responsible trade.
“The increase from 10% to 12.5% adds further challenges for Australian exports, particularly given a number of other economies received a lesser tariff of 10%.”
Mr Guerin said the NFF had long championed free and fair trade, not just for agriculture but all industries, recognising its role in global economic growth, stability and food security.
“Australia’s interests are best served by pursuing open markets, maintaining our reputation as a trusted and responsible trading partner, and continuing to strengthen our trading relationships around the world,” he said.
“While some major agricultural exports appear to remain exempt, including Australian beef, today’s decision is nevertheless a disappointing setback for Australian exporters.”
General manager freight policy & operations for the Freight & Trade Alliance (FTA), Tom Jensen said the decision was "one of the most significant U.S. trade measures affecting Australian exporters in recent years".
"The immediate concern for industry is the impact on competitiveness in the U.S. market and the rationale for Australia's inclusion, particularly given Australia's existing modern slavery legislation and recent steps to further strengthen that framework," Mr Jensen said.
Earlier, federal trade minister, Don Farrell, called for the US to change its approach.
“These tariffs are unjustified, inconsistent with our free-trade agreement and should be removed,” Senator Farrell was quoted in The Guardian.
“Australia’s measures to combat forced labour and modern slavery are among the strongest in the world and we are recognised globally, including in the US, for our leadership.”
