The Trump administration has confirmed Australian exports to the US will be hit with a 12.5 per cent tariff from later today, replacing the temporary 10 per cent levy that was due to expire.
Australia is among dozens of countries facing new tariffs, first proposed last month following a US trade investigation into forced labour.
The levy will take effect from 12.01am Friday local time (2.01pm Friday AEST and 12.00pm AWST), although some countries, including the UK, will face a lower 10 per cent rate.
The Trump administration says the move is aimed at tackling forced labour and slavery, arguing American businesses are being placed at a competitive disadvantage because other countries are not doing enough to address the issue.
However, many analysts believe the tariffs are effectively replacing broader trade measures struck down by the US Supreme Court earlier this year, with the forced labour investigation serving as the legal basis for the new policy.
The Australian Government and the Business Council of Australia both lodged formal submissions opposing the tariffs during the consultation period, which ended earlier this month.
More to come...
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