‘No way’ for Australia to talk way out of fresh tariffs
Australia will likely face higher tariffs from the US, as analysts warn Australia has no good chance of negotiating an exemption.
The US has proposed a 12.5 per cent tariff on Australian goods as part of new tariff plans for 60 countries, prompting condemnation from the country’s political leaders.
The White House says the tariffs are in response to inadequate anti-slavery laws, but the move is widely thought to be a temporary solution after the Supreme Court struck down Donald Trump’s original “Emancipation Day” tariffs.
But Australian beef and gold will continue to be exempt from American taxes.
Hayley Channer, director of economic security at the Center for United States Studies, said that although Australian diplomats had expressed concerns about the new measures, it was unlikely to lead to a disruption.
“Given that many countries in the group include close US allies such as Japan that are not exempt, tariffs will most likely apply to us,” he told AAP.
“There is no real way to negotiate our way out of this.”
Ms. Channer said the move signals to the world that Washington remains firmly entrenched in the trade war against China.
“Some of the countries targeted by the new tariffs have some of the harshest anti-slavery laws in the world,” he said.
“It’s just another way to wean countries off Chinese goods.”
According to the changes, a two-stage tariff will be applied.
A 12.5 percent tariff will be imposed on 54 countries, including Australia, where the United States believes anti-slavery laws are weak.
The remaining six countries would face a 10 percent tax due to what Washington sees as a lack of enforcement.
The changes are expected to come into force in late July, when the current basic 10 percent tariff ends.
Trade Minister Don Farrell spoke to his US counterpart Jamieson Greer on the sidelines of the OECD ministerial meeting in Paris to explain Australia’s situation.
A spokesman for Senator Farrell said the country had “robust, comprehensive and world-leading” laws against forced labor and modern slavery.
“Australia maintains our position that any tariffs on Australian exports to the United States are unfair and inconsistent with our free trade agreement,” the spokesman said.
“We continue to use every opportunity to argue that the US tariffs on Australia are unwarranted.”
Prime Minister Anthony Albanese said the tariffs would only increase prices for US consumers.
“There’s an ideological disagreement in which the United States administration is overturning decades of understanding that tariffs are not positive for the country that imposes them,” he told ABC Radio.
Coalition leader Angus Taylor also condemned the latest trade salvo from the US.
“Tariffs like this shouldn’t be imposed on Australia and the US shouldn’t be doing this either… we’ve fought them in every war, every major war, they shouldn’t be imposing tariffs on us,” he said.
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