Labor warns of US trade tariffs of 20pc under Donald Trump

Trade Minister Don Farrell has privately briefed Australian trade groups to expect the tariffs across the board as Donald Trump prepares to unveil his ‘Liberation Day’ trade war on the world.

US President Donald Trump is preparing to reveal his Liberation Day tariffs.

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Trade Minister Don Farrell has privately briefed Australian trade groups to brace for 20 per cent tariffs across the board as the US President Donald Trump prepares to unveil his Liberation Day trade war on the rest of the world.

In a private briefing to the trade representatives late on Tuesday, which included Australian steel and agriculture, Mr Farrell said he was “pessimistic” about any relief for Australia revealing he had rejected a counter offer from Washington during early negotiations.

Mr Farrell admitted that the option of imposing retaliatory tariffs had been “tempting” but said there was no evidence from the experience of other countries that Australia would benefit from such actions.

On the contrary, it would likely have a more deleterious impact.

However, he told the group, which is believed to have also included unions, that Australia would keep open legal options through mechanisms such as the World Trade Organisation and existing bilateral treaties.

Mr Farrell said it was unclear whether the 20 per cent tariffs would be cumulative.

He told the group that the US had initially given Australia two options: to engage now and negotiate or wait for the announcement on April 2.

Trade Minister Don Farrell has warned business and trade groups that sweeping US tariffs are coming. Picture: Luis Enrique Ascui

He said Australia had chosen the first option and put an offer to US trade officials which included access to critical minerals. That offer was rejected with the US making a counter offer which Australia rejected.

Mr Farrell said Australia then demanded that its original offer be put directly to President Trump.

He said Australia had no plans to retaliate although “it had been tempting at times”.

The private briefing was organised by the Department of Foreign Affairs and Trade, raising questions about the department’s political engagement during the election’s caretaker period.

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