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Tess Ikonomou

'No way' for Australia to talk way out of fresh tariffs

The Albanese government will find it tough to negotiate its way out of Donald Trump's new tariffs. (Susie Dodds/AAP PHOTOS)

Australia will likely be lumped with higher tariffs by the US, as analysts warn the nation doesn't stand a good chance of negotiating an exemption.

The US has proposed a 12.5 per cent tariff on Australian goods as part of plans for new levies on 60 countries, drawing condemnation from the nation's political leaders.

The White House says the taxes are in response to inadequate anti-slavery laws, but the move is widely considered to be a work-around after the Supreme Court struck down Donald Trump's original "Liberation Day" tariffs.

But Australian beef and gold will maintain their exemptions from the American levies.

Export cattle on a truck at the Noonamah stockyards outside Darwin, NT
Australian beef will maintain its exemption from Donald Trump's new levies. (Dave Hunt/AAP PHOTOS)

While Australian diplomats would voice their concerns over the new measures, it would unlikely result in a carve-out, United States Studies Centre director of economic security Hayley Channer said.

"The tariffs will most likely apply to us, given so many countries in the group include close US allies such as Japan who have not been made exempt," she told AAP.

"There's no real way to negotiate our way out of this."

Ms Channer said the move signalled to the world Washington remains entrenched in its trade war against China.

"Some of the countries targeted by the new tariffs have the toughest anti-slavery laws in the world," she said.

"It's another avenue to steer away countries from Chinese goods."

Under the changes, two tiers of tariffs would be imposed.

A large container ship arrives at Port Botany in Sydney
The new US tariffs are set to come into force in July when the baseline levy expires. (Steven Markham/AAP PHOTOS)

A 12.5 per cent tariff would be applied to 54 nations, including Australia, that the US believes have poor anti-slavery laws.

The remaining six countries would face a 10 per cent levy over what Washington deems is a lack of enforcement.

The changes are expected to come into force late July when the current baseline 10 per cent tariff expires.

Trade Minister Don Farrell spoke with his US counterpart Jamieson Greer on the sidelines of the OECD ministerial meeting in Paris to make Australia's case.

A spokesperson for Senator Farrell said the nation had "robust, comprehensive and world leading" laws against forced labour and modern slavery.

"Australia maintains our position that any tariffs on Australian exports to the United States are unjustified and inconsistent with our free trade agreement," the spokesperson said.

"We continue to use every opportunity to advocate that US tariffs imposed on Australia are unwarranted."

Trade Minister Don Farrell and Prime Minister Anthony Albanese
Don Farrell and Anthony Albanese have warned against the economic impacts of tariffs. (Aap/AAP PHOTOS)

The tariffs would only push up prices for US consumers, Prime Minister Anthony Albanese said.

"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," he told ABC Radio.

Coalition leader Angus Taylor also blasted the latest trade salvo from the US.

"There shouldn't be tariffs like this imposed on Australia, and the United States shouldn't do it ... we fought with them in every war, every major war, they shouldn't be imposing tariffs on us," he said.

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