Trump Imposes 12.5% Tariff on Australia on July 24, Amid Criticism Over Justification

According to Betashares Chief Economist David Bassanese, U.S. President Trump imposed a 12.5% tariff on Australia on July 24, citing insufficient enforcement of forced labor prohibitions—a justification Bassanese called "absurd." He characterized the reasoning as "a weak excuse to find an alternative approach" for tariffs previously rejected by the U.S. Supreme Court earlier this year.

Bassanese warned that the tariff adds renewed price pressure as inflation effects from earlier tariff increases are only beginning to ease, and higher tariffs increase the risk of Federal Reserve rate hikes later in 2026.