The Australian Chamber of Commerce and Industry (ACCI) says the decision of the US Trump Administration to impose tariffs of ten per cent on Australian goods into the United States is a clear breach of the Australia-US Free Trade Agreement.
“The Administration’s decision will reduce trade and increase costs for businesses and consumers,” ACCI chief executive officer Andrew McKellar said today. "This is an act of self-harm which has the potential to create a trade war and inflict significant damage to the global economy.
“Australia and the United States signed a Free Trade Agreement in 2005 for the purposes of enhancing trade, and these tariffs are in clear breach of that agreement.”
Australia’s largest and most representative business network says our two countries have enjoyed a mutually beneficial two-way trade and investment relationship for decades.
Australia imposes zero tariffs on US goods and the US has had a trade surplus with Australia since 1952. Mr McKellar said introducing retaliatory tariffs is not the answer.
“There is no benefit to Australian consumers, businesses and producers by retaliatory tariffs and we agree with the decision of the Australian Government to rule them out.”
Australian business has worked with the Australian Government to try to persuade the US Administration not to impose tariffs. ACCI will continue to work with the Australian Government in support of its advocacy efforts and with partner organisations in Australia and in the United States.