Australia cites 'ideological disagreement' with US over 12.5% tariff

Australian Prime Minister Anthony Albanese on Thursday said that Canberra has an "ideological disagreement" with the US after Washington revealed a plan to impose a 12.5% tariff on Australian goods.

The Trump administration on Tuesday unveiled a proposal to impose additional tariffs of 10% or 12.5% on imported goods from at least 60 economies, including Australia, alleging the use of forced labor in production.

"There is an ideological disagreement where the United States administration has broken with what was a decades-long understanding that tariffs are not positive for the country that is imposing them," Albanese was quoted by the Australian Broadcasting Corporation (ABC) as saying.

A previous 10% tariff on Australian imports was struck down by the Supreme Court in February.

Albanese said any tariff on Australian exports to the US is "unjustified and inconsistent" with the free trade agreements between the two allies.

"They increase the cost of goods and services in the country that is applying them to its consumers, and … free trade is in the interests of the global economy," he said.

Australian Trade Minister Don Farrell also said the tariffs are "unjustified" during a meeting with US Trade Representative Jamieson Greer on the sidelines of an Organization for Economic Co-operation and Development (OECD) meeting in Paris overnight.

"It's one of which no notice was given. One of the things that we ask for in terms of international engagement is certainty. Australia and the United States are important allies," he said.

"It is unfortunate that there has been a rolling series of decisions, some of which change from time to time, but all of which do have a common theme, which is that the United States is a supporter of tariffs," Albanese added.