Trump intends to impose reciprocal tariffs on countries that tax American imports, and refers to the long-planned event as “liberation day for America”. He says the new tariffs “will be far more generous than those countries were to us”.
Australia and the US negotiated a free trade agreement in 2005 that removed tariffs between the two nations (until Trump imposed 25 per cent levies on steel and aluminium in February).
White House press secretary Karoline Leavitt with a sheet highlighting other countries’ tariffs on US products.
White House press secretary Karoline Leavitt with a sheet highlighting other countries’ tariffs on US products.Credit: Bloomberg
The administration has said it will also crack down on other countries’ non-tariff trade barriers, such as those mentioned in the USTR report. But it was not clear if that would take place this week.
On Sunday, on board Air Force One, Trump said the tariff moves would apply widely. “You’d start with all countries,” he said. “Essentially, all of the countries that we’re talking about.” Advisers have previously suggested the tariffs would focus on a “dirty 15” with which the US had the largest trade deficits.
White House press secretary Karoline Leavitt said she would leave the details of the announcement to Trump. Asked by this masthead whether countries with non-tariff trade barriers such as Australia should expect to be included in the “liberation day” tariffs, she said: “I think any country that has treated the American people unfairly should expect to receive a tariff in return on Wednesday.”
Arrangements for the tariffs were still being decided. On Sunday, White House National Economic Council director Kevin Hassett told Fox News Trump was yet to decide how many countries would be hit.
“I can’t give you any forward-looking guidance on what’s going to happen this week. The president has got a heck of a lot of analysis before him, and he’s going to make the right choice, I’m sure,” Hassett said.
Trade Minister Don Farrell and the Department of Foreign Affairs did not immediately respond to a request for comment. Treasurer Jim Chalmers said on Monday that he would pre-empt decisions being made by the administration on tariffs.
“We have been engaging whenever and wherever we can, to speak up for and stand up for Australia’s interests,” he said. “We are not uniquely impacted by the tariffs which have been applied or which are being speculated upon, but we are a trading nation, and so we will continue to make our case.”
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