Australia has been hit with a sweeping 10% tariff on all exports to the United States, after President Donald Trump confirmed the move in his highly anticipated ‘Liberation Day’ speech.
The US president, standing beside a board listing countries and their supposed tariff rates, claimed Australia imposed a 10% tariff on US goods and accused it of “currency manipulation and other trade barriers.” In response, he announced a blanket 10% reciprocal tariff on all Australian imports.
Prime Minister Anthony Albanese slammed the move as “unwarranted” and signalled that his government may take the United States to the World Trade Organization (WTO) over the decision. “We are prepared for all possibilities,” he said, while reaffirming Australia’s commitment to free and fair trade.
At a press conference today, Prime Minister Albanese reaffirmed the government’s commitment to protecting Australian jobs, industry, consumers, and values. He described the newly imposed tariffs as “unwarranted but not unexpected,” emphasising that while other nations may be hit harder, Australia is well-prepared to navigate the challenges.
“These are uncertain times – but all Australians can be certain of this: we will always stand up for Australian jobs, Australian industry, Australian consumers and Australian values.”
The tariffs mark a sharp escalation in trade tensions between the two allies. Under the 2005 US-Australia Free Trade Agreement, both countries had committed to tariff-free trade. Australia currently imposes zero tariffs on American goods, making Trump’s claims of unfair trade barriers highly contentious.
Trump also cited Australia’s long-standing ban on US beef imports—introduced in 2003 due to concerns over mad cow disease—as justification for the tariffs.
The Albanese government is now weighing its response, with Trade Minister Don Farrell in urgent talks with industry leaders. Analysts warn that the tariffs could hit key Australian exports such as beef, pharmaceuticals, and precious minerals, with billions of dollars at stake.
While Australia could challenge the move through the WTO or the US-Australia trade agreement’s dispute mechanism, it remains unclear whether the Trump administration would engage in negotiations or comply with any rulings.
Support Our Journalism
Global Indian Diaspora and Australia’s multicultural communities need fair, non-hyphenated, and questioning journalism, packed with on-ground reporting. The Australia Today – with exceptional reporters, columnists, and editors – is doing just that. Sustaining this needs support from wonderful readers like you.
Whether you live in Australia, the United Kingdom, Canada, the United States of America, or India you can take a paid subscription by clicking Patreon and support honest and fearless journalism.
