Australia is expecting the United States to honour its free trade deal and not impose new tariffs, says trade minister Don Farrell.
And the EU, America’s largest trading partner, has echoed that sentiment as they froze a new trade deal in the wake of the new tariffs.
Farrell’s comment came after US President Donald Trump cited different laws to impose a new global tariff on all trading partners after the US Supreme Court ruled his previous tariffs were illegal.
In an interview with Sky News on Monday, Farrell says Australia remains opposed to the new tariffs.
“We have a free trade agreement with the US. We honour our part of that deal and don’t charge tariffs on American goods that come into Australia,” he says.
“We expect the Americans to do the same and provide tariff-free access to all Australian goods coming into the United States.”
FRIDAY’S RULING IN A NUTSHELL
The US Supreme Court on Friday (US time) struck down the tariffs that Trump had imposed last year, saying he used emergency laws illegally.
The ruling opened the way for refunds to American companies who paid these tariffs; large companies have begun suing the US government to return the money collected under the emergency powers.
Within hours of the ruling, Trump had announced a 10% broad global tariff using different powers and a day later lifted the new tariff to 15%; the Trade Act powers he cited caps these new tariffs at 150 days and an extension will need congressional approval.
Farrell says there is confusion in Australian circles about the new tariffs; he points out that a presidential order signed by Trump mentions 10% but a later social media post from him flagged a 15% rate.
AUSTRALIA WANTS TO KEEP EDGE
He says Australia is keen to hold onto its lower tariff rate that had been struck down as it gave Australia a “competitive edge”.
“Since so-called Liberation Day in April last year, our trade with the US for most goods has actually increased,” he says.
“We came in at the lowest level of tariffs of any country and our competitors came in at a higher tariff so we had a competitive advantage getting into the US.
“We were very quick to take advantage of that competitive position. By and large, in terms of value and volume, our trade has gone up. Now this changes the picture,” he says of the new tariffs.
Farrell is off to the US this week to help launch G’Day USA 2026 in Los Angeles and take part in talks between the LA 2028 and 2032 Brisbane Olympic Games organising committees about the torch relay.
He will also be meeting with US Trade Representative Jameison Greer “to make it very clear to them (the Americans) that we’re not happy with this decision”.
“We didn’t twist the Americans’ arm to sign a free trade agreement; they freely went into that agreement,” Farrell says.
“When you reach international agreement, you should honour them.”
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