US tariffs on Australia remain at 10 per cent — for now
Donald Trump had threatened a tariff rate of 15 per cent. ( Reuters: Kenny Holston/Pool)
In short:
United States trade officials have confirmed a 10 per cent tariff rate for Australia, Trade Minister Don Farrell says, but added it could still be lifted.
US President Donald Trump had threatened a 15 per cent tariff rate after his initial regime was struck out by the US Supreme Court.
The president says the 150-day temporary tariff scheme has been signed into force.
Trade Minister Don Farrell hopes Australia can dodge a higher tariff rate being imposed by the US, saying trade officials overnight confirmed the tariff rate on Australia would remain at 10 per cent — at least for now.
US President Donald Trump announced his plans to reintroduce a broad tax on imports at a minimum rate of 15 per cent after his first scheme was ruled unlawful by the US Supreme Court.
Senator Farrell said, however, he had been informed by his US counterpart that when the tariffs began, Australia's would remain at the previous rate of 10 per cent.
"We've been talking to my counterpart overnight, and it does seem pretty clear now that the tariff on Australian goods has remained at 10 per cent," Senator Farrell told Channel Nine.
"We saw over the weekend that the figure was supposed to be 15 per cent, that was certainly the figure President Trump announced over the weekend ... [but] they have confirmed the figure remains at 10 per cent."
It remains unclear whether tariffs on Australia could eventually be lifted to 15 per cent.
US Trade Representative Jamieson Greer told Fox Business that the rate could shift, but the administration would aim for "continuity".
"We expect to have continuity in what we're doing," Mr Greer said.
"Even right now, we have the 10 per cent tariff, it will go up to 15 for some, and then it may go higher for others, and I think it will be in line with the types of tariffs we've been seeing.
"We want to have continuity in this program."
Senator Farrell acknowledged that the 10 per cent rate may be temporary.
"That's not to say that is where it is going to stay, but my objective while I am over here … will be to prosecute the argument for all the tariffs on Australian goods," he said.
"It doesn't make any sense.
"It pushes up prices in the United States."
Mr Greer added that he only "really" expected tariffs would be raised on countries if they "reneged on their deals or doubled down on these unfair trade practices".
Asked how Australia had evaded a 15 per cent tariff rate, Senator Farrell responded: "You'd have to ask President Trump that question."
Senator Farrell said despite the tariffs, Australian trade had continued to grow to a record $133 billion.
Don Farrell says it is possible the tariff rate could still be raised to 15 per cent. (ABC News: Matt Roberts)
Mr Trump vowed to revive his tariff scheme using a different mechanism after the court found the president had illegally imposed tariffs under a law meant for national emergencies.
The furious president responded that the court's justices, who had struck out the laws in a 6-3 vote, were "fools and lapdogs".
That decision leaves a question mark over whether the US would have to refund the more than $US100 billion ($140.42 billion) it has collected from businesses.
However, the court did not provide guidance on a process to pay back businesses.
Writing on his social media platform, Truth Social, Mr Trump confirmed the US administration would reimpose tariffs using separate legislation unrelated to the court ruling.
"I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been 'ripping' the U.S. off for decades, without retribution (until I came along!)," Mr Trump wrote.