Australia is reassessing its trade position with the United States after President Donald Trump announced plans to impose a new 15 per cent tariff on all imports, a move that could directly affect Australian exporters and test the resilience of a long-standing free trade partnership.
The decision follows a US Supreme Court ruling that struck down a sweeping tariff regime introduced in April last year, finding that the President had exceeded his authority in applying the so-called “reciprocal” tariffs on more than 100 countries, including Australia. While the court left intact the sector-specific 50 per cent tariffs on steel and aluminium, it overturned the across-the-board 10 per cent “liberation day” tariff.
Within hours of the ruling, President Trump reinstated a baseline 10 per cent tariff and flagged plans to raise it to 15 per cent. To sidestep the court’s decision, he relied on separate legislation that allows the President to impose tariffs of up to 15 per cent to address “fundamental international payment problems”. However, the law limits such measures to 150 days unless Congress votes to extend them.