Australian Trade Minister Says No Change to US Tariff Levels on Exports

Trade Minister Don Farrell says Australian exporters face no new tariff increases for trying to enter the United States amid the fallout of the U.S. Supreme Court ruling on the Trump administration’s trade measures.

Speaking from Los Angeles, where he is promoting Australia at the launch of G’Day USA 2026, Farrell said the practical outcome for Australian businesses was unchanged.

“The net effect of what’s happened over the last week is that there’s been no change to any tariff applied to Australian goods,” Farrell told ABC Radio Breakfast.

The U.S. Supreme Court earlier struck down President Donald Trump’s so-called “Liberation Day” tariffs, ruling that the International Emergency Economic Powers Act (IEEPA) did not have the authority to implement tariffs.

In response, the president warned of a potential baseline global tariff of 15 percent via a Feb. 20 presidential proclamation invoking Section 122 of the Trade Act of 1974.

However, Australia’s Farrell said the subsequent executive order signed by U.S. President Donald Trump retained a 10 percent figure, not 15 percent.

Farrell confirmed he will meet U.S. Trade Representative Jamieson Greer over the weekend to push for the complete removal of the tariffs.

“We don’t think they’re justified. We don’t apply tariffs to goods that come in from America. Our free trade agreement provides that those goods that go from Australia to the United States should go tariff free, and we want the Americans to honour that,” he said.

Farrell added that the Supreme Court’s intervention supported Australia’s long-standing position on the issue.

“The argument to my counterpart tomorrow will be that we want these tariffs removed, firstly, because it’s in Australia’s interest to have them removed, because it simply pushes up the price of our product in the United States, but it also pushes up the cost of living for ordinary Americans.”

Coalition Says Tariffs Damaging to Bilateral Ties

Australia’s federal shadow defence spokesperson James Paterson called the tariffs damaging to bilateral ties.

“I think it’s regrettable and unfortunate as it relates to the Australia-U.S. trading relationship,” Senator Paterson told Sky News on Feb. 22.

“It’s contrary to our free trade agreement and the spirit of our friendship between our two nations.”

He said he hoped the Albanese government and incoming Ambassador Greg Moriarty Could secure an exemption.

Beyond Washington, Farrell said negotiations with the European Union were also progressing and he is hoping to close the deal in the next few weeks.

“Both Europe and Australia believe in free and fair trade. We believe this is an opportunity to take advantage of the instability in the rest of the world to reach an agreement,” he said.

The EU was Australia’s third-largest two-way trading partner in 2024 and its second-largest source of foreign investment.