The United States government has confirmed that a 12.5 per cent tariff will be imposed on Australian exports to the US starting from 12:01am local time on Friday, July 24, 2026. This tariff is part of a broader announcement that includes 10 per cent tariffs on goods from more than a dozen countries and the European Union.

A tariff is a fee added to goods when they are imported from one country to another. For example, if a product costs $100 in the exporting country, a 12.5 per cent tariff means the importing company pays $112.50 upon arrival.

The US administration, under President Donald Trump, has stated that these tariffs aim to address the importation of goods made with forced labour. However, experts note that the Trump administration has been seeking legal avenues to apply blanket tariffs on foreign imports after previous tariffs were ruled illegal by the US Supreme Court in February 2026.

Dr. Stone explained that this tariff is implemented through Section 301, a method that involves a more detailed process. The tariffs create a dynamic where American workers are forced to compete globally on an unlevel playing field. It is also noted that President Trump has a known preference for tariffs as a trade tool.

The impact on Australia and other affected countries remains to be seen as the tariffs take effect.

Sources