Trump has slapped a 12.5pc tariff on Australian goods. What does that mean?
The US government has imposed a 12.5% tariff on Australian exports as part of a broader strategy targeting multiple nations following an investigation into forced labor. This increase adds to a pre-existing temporary surcharge, potentially impacting trade costs and consumer prices.
Why it matters
Tariff changes significantly impact international trade relations and the cost of goods for businesses and consumers in both the US and Australia.
The US government has announced a new set of tariffs on imports for dozens of countries, including Australia. ( Reuters: Mike Blake )
Link copied Share Share article The US government has confirmed a 12.5 per cent tariff will be placed on Australian exports to the US from this afternoon.
Here's what that means, US President Donald Trump's reasoning for it and how Australia has responded.
A tariff is a fee added when goods are sent from one country to another.
This import tax is paid by the company receiving the goods.
Here's a very basic example of how tariffs work, based on Emily Clark and Brad Ryan's explainer :
Let's say Country A is exporting a product to Country B and that item costs $100 .
Country B has imposed a 12.5 per cent tariff on goods from Country A .
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