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US farmers demand Trump slap tariffs on Australia

As America’s peak trading association described Australia as a ‘problematic market’, US farmers complained about the ‘dramatic disadvantage’ they faced in selling into Australia.

An established blueberry farm and large-scale cold store packing shed in northern NSW. Picture: supplied
An established blueberry farm and large-scale cold store packing shed in northern NSW. Picture: supplied

American agricultural producers, from winemakers to blueberry growers, are bearing down on US President Donald Trump to bypass “protectionist” biosecurity laws and slap tariffs on Australian exports, joining multinationals, big tech and drug companies in demanding the White House overhaul reciprocal trading arrangements with Canberra.

As America’s peak trading association described Australia as a “problematic market” with taxes and reporting requirements that the National Foreign Trade Council called “burdensome, discriminatory, or excessive”, US farmers complained about the “dramatic disadvantage” they faced when it came to the trading relationship with Australia.

“For nearly two decades, the US blueberry industry has pursued market access for fresh blueberries to Australia … A nearly 20-year delay is unacceptable – this request must be prioritised and completed as soon as possible,” a submission to the trade office by the North American Blueberry Council said.

A similar submission from the Northwest Horticultural Council said: “Australia unfairly prohibits the importation of apples from the United States due to expressed phytosanitary concerns, while allowing access for our competitors in the People’s Republic of China and New Zealand”.

“Australia only addresses one market access request from the US at a time. A policy clearly designed to limit imports,” the NHC submission said.

The formal complaints, lodged with Mr Trump’s trade chief, reveal decades-long resentments US producers harbour against foreign imports and raise the prospect that Australia’s agricultural sectors could face another trade war, just months after China lifted the last of its tariffs on wine, beef, barley and lobster.

The Californian Citrus Council criticised Australia’s “unfair trade conditions” in its submission to the trade office, demanding action be taken to limit mandarin imports going forwards.

“To remedy this problem, we recommend that Office of the United States Trade Representative negotiate with trading partners to impose a tariff rate quota that would limit the volume of mandarins that can be imported from Chile, Peru, Australia, New Zealand and South Africa from October through May,” the submission said.

President Trump threatened earlier this year to enforce reciprocal tariffs on countries such as Australia as a “matter of fairness”, with Labor ministers admitting on Thursday the new administration seemed “hell bent” on proceeding with the trade sanctions.

It follows the Trump Administration refusing to give Australia an exemption to the 25 per cent tariffs on steel and aluminium, which are worth $1bn to Australia in export value every year.

The California Association of Winegrape Growers also launched a fiery attack on the Australian government over a 29 per cent tax on wine sales that it said was among a number of “unfair, non-reciprocal trade practices” disadvantaging US wine producers.

Reputed non-drinker Donald Trump proposes a toast during a state banquet dinner. Picture: AFP
Reputed non-drinker Donald Trump proposes a toast during a state banquet dinner. Picture: AFP

Winemakers railed against the “influx of cheap, imported bulk wine” from Australia and other markets, which growers said were causing vineyards and generational farmers to go “out of business at an alarming rate”.

The warning was echoed by beef farmers, who declared America was “losing farms and ranches at an alarming rate” and pointed the finger at the fact Australia exported more than five million metric tonnes of beef to the US versus the 20,000 tonnes American farmers exported back to Australia.

“US beef is at a dramatic tariff disadvantage, especially as Australia’s Free Trade Agreement with the UK was implemented in 2023, allowing them duty-free access,” a submission from the US Meat Export Federation said.

“Australia is one of the last countries to maintain a ban on US beef exports more than 21 years post-Bovine Spongiform Encephalopathy (Mad Cow Disease). Its restrictions are purely a protectionist measure against the US beef industry which are long overdue for resolution.”

The grape growers also accused the Australian government of handing out benefits to the local wine industry – including rebates, $100,000 grants, loans and financial assistance – while foreign imports are subject to the Wine Equalisation Tax.

“US wine exporters … must pay the full 29 per cent tax without access to any offsets, making it more difficult to compete in the Australian market,” the association said.

“This structural imbalance, combined with additional import duties and taxes, creates a significant trade barrier that unfairly disadvantages US wine producers. Australia’s wine industry benefits from government programs that distort competition.”

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The US meat industry has also targeted Australia in its pleas to Mr Trump to remove “tariff and non-tariff barriers” to American exports, arguing that Australia benefits from a free-trade agreement but continues to bar imports on biosecurity grounds.

It follows the US pharmaceutical lobby accusing Canberra of breaching obligations under the free-trade agreement with Washington by making it too difficult for foreign companies to list drugs on the Pharmaceutical Benefits Scheme.

American tech giants have also appealed to Mr Trump to respond to Australia’s bid to force social media platforms to fund news media and argued that American streaming media platforms were being harmed by requirements for the companies to pay for Australian content.

The Computer and Communications Industry Association – whose members include X Corp which is owned by Mr Trump’s close ally Elon Musk – also objected to Australian laws tackling artificial intelligence on the grounds they would curb American innovation. 

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Original URL: https://www.theaustralian.com.au/nation/us-winemakers-push-trump-to-impose-tariffs-on-australian-exports/news-story/cbbb819205f016c7080aac28102188bf