Australia Looks At Ways To Stop New US Tariffs On Goods From 15% on Feb 22, 2026

Australia's trade with the US is under review as new tariffs could increase to 15% from the current 10% starting February 22, 2026.
By Newsroom | Trade, Australia |

Recent announcements by US President Donald Trump regarding new tariffs have prompted Australia to explore all available actions to manage potential economic impacts. The measures, initially a 10% tariff that was later raised to 15%, followed a US Supreme Court ruling concerning previous tariffs. Australia's trade minister has indicated that discussions are underway to understand the full implications.

Background on US Tariff Adjustments

In November, prior to these recent changes, President Trump had removed tariffs on certain Australian exports, such as beef, coffee, and bananas, citing insufficient domestic supply. This action occurred before the latest series of tariff announcements. The sequence of events leading to the current situation began when the US Supreme Court overturned an earlier 10% import tariff. Shortly thereafter, President Trump announced the reinstatement of these duties, initially at 10% and subsequently increased to 15%, using a different legal framework.

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Tariff Rates and Australian Response

The tariff adjustments announced by President Trump have affected numerous countries. Some nations experienced significant increases, with Syria facing a 41% tariff and Myanmar and Laos each at 40%. Switzerland's tariff rate shifted from 31% to 39%. Canada saw its tariff rise from 25% to 35%, while Mexico's rate remained at 25%, avoiding an increase to 30%.

Australia's situation has seen fluctuating rates. Initially, Australia received a 10% tariff rate. There was concern that this rate might increase to 15% or 20%. However, as of recent reports, the tariff on Australian products has been kept at 10%. Trade Minister Don Farrell has stated his commitment to continued discussions to achieve tariff-free trade with the United States. The opposition has suggested that the government's success in avoiding higher tariffs is due to the structure of the economy rather than diplomatic efforts.

Legal Context of Tariff Changes

The US Supreme Court's ruling on Friday has significant implications. The court determined that tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA) were unlawfully collected. This ruling has created uncertainty regarding the process for refunds of these collected tariffs. While the ruling itself did not provide clarity on refunds, previous statements from the US Court of International Trade in December indicated its authority to order reliquidation and refunds if tariffs were found to be unlawful. President Trump has expressed dissatisfaction with the Supreme Court's decision.

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Australia's "Examine All Options" Stance

In response to the evolving tariff landscape, Australia's Trade Minister, Don Farrell, has stated that the government is "examining all options." He is reportedly working closely with Australia's embassy in Washington to assess the full implications of the new measures. This approach suggests a proactive stance in exploring diplomatic and economic strategies to mitigate any negative consequences of the US tariff decisions.

Expert Analysis

  • The dynamic nature of these tariff announcements suggests a period of ongoing negotiation and potential further adjustments. The reliance on different legal bases for imposing tariffs, as indicated by the use of the International Emergency Economic Powers Act, points to complex legal and administrative considerations within the US trade policy. The varying tariff rates applied to different countries indicate a targeted approach, rather than a uniform global increase, potentially reflecting bilateral trade relationships and specific economic conditions.

Conclusion and Next Steps

President Trump's recent tariff announcements have introduced a new layer of complexity to international trade, with Australia actively monitoring and responding to these changes. While some countries face substantial tariff increases, Australia has, for now, maintained a 10% tariff rate on its products. The legal context surrounding these tariffs, particularly the fallout from the Supreme Court's ruling on previously imposed duties, adds further uncertainty. Australia's stated intention to "examine all options" signifies a commitment to actively managing its trade relationship with the United States through ongoing dialogue and strategic evaluation of available measures. Future actions will likely depend on further pronouncements from the US administration and ongoing bilateral discussions.

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Frequently Asked Questions

Q: Why is Australia looking at new US tariffs announced on February 22, 2026?
US President Donald Trump announced new tariffs that could go up to 15%. Australia's Trade Minister, Don Farrell, is looking at all options to manage the economic effects of these changes on Australian goods.
Q: What is the current tariff rate for Australian goods in the US as of February 22, 2026?
The tariff rate for Australian products in the US is currently 10%. There was worry it might increase to 15% or 20%, but it has stayed at 10% for now.
Q: What caused the US to change its tariff rules recently?
The US Supreme Court overturned a previous ruling on tariffs. After this, President Trump announced new tariffs, first at 10% and then raised to 15%, using a different legal reason.
Q: Which other countries are affected by the new US tariffs announced around February 2026?
Many countries are affected. Syria faces a 41% tariff, Myanmar and Laos face 40%, Switzerland's tariff is now 39%, and Canada's is 35%. Mexico's tariff stays at 25%.
Q: What does Australia's Trade Minister, Don Farrell, plan to do about the US tariffs?
Trade Minister Don Farrell is talking with Australia's embassy in Washington to understand the full impact. He wants to work towards having no tariffs between Australia and the US.