Trump's proposed new tariff for Australia unlikely to impact agriculture

Proposed new tariffs by the US on Australian goods entering the nation are not expected to affect the agricultural industry.

The Trump administration announced plans last week for a new 12.5 per cent tariff on dozens of countries it says are failing to crack down on goods made with forced labour, which included Australia.

However, federal politicians from all sides have said that Australia has a range of mechanisms to deal with the issue.

Australia is currently slapped with a 10 per cent tariff.

TasFarmers CEO Nathan Calman said Australia had handled the threat of tariffs maturely to date.

“The unintended consequence of these tariffs on Americans is that they will have to pay more for goods they are choosing to purchase from Australia,” Mr Calman said.

“Given that America currently has a huge shortfall in terms of beef supply, I don’t think a 2.5 per cent increase in the tariff rate will change consumer demand in terms of beef leaving Australia for America.”

Leader of The Nationals Matt Canavan said Labor must fight the Trump Administration’s proposed new 12.5 per cent tariffs.

“We are great friends with Americans, but these latest tariffs are based on a fig leaf of a justification,” Senator Canavan said.

“Australia has strict laws against the use of forced labour and modern slavery.

“The US investigation has not provided detailed evidence that Australia fails to stop products made with forced labour.

“Its report is a smokescreen to justify tariffs it clearly intended to put on in any case.”

Trade Minister Don Farrell said the government had put forward its case against the tariffs.

"We have a free-trade agreement with the United States, which we honour," Mr Farrell said. 

"We don't apply tariffs to any goods that come in from the United States.

“We expect the United States to do exactly the same and honour our free-trade agreement."