SYDNEY, 8 June 2025 (BSS/AFP) – Australia is seeking to diversify its trade relationships and expand free trade agreements in response to sweeping and “unjustified” tariffs imposed by the United States, according to Trade Minister Don Farrell.
The United States, a long-standing ally of Australia, has slapped a blanket 10% tariff on Australian exports, with steel and aluminium facing a punitive 50% duty, as part of former President Donald Trump’s global tariff policy.
“We are exploring broader trade partnerships to ensure we’re not overly reliant on any single market,” Farrell told Sky News Australia on Sunday.
Australia–US Trade at a Glance
| Trade Indicator | Value/Details |
| Annual bilateral trade | ~AUS$100 billion (US$65 billion) |
| Trade balance | Australia imports more from the US |
| Tariffs imposed by US | 10% on all goods; 50% on steel/aluminium |
| Australia’s stance | Calling for complete removal of tariffs |
Push for Global Free Trade
Farrell’s comments followed a series of high-level trade meetings in Paris with the World Trade Organization (WTO), the Organisation for Economic Co-operation and Development (OECD), and representatives from other nations. The discussions centred around countering rising protectionism and strengthening free and fair trade.
“We’re working with like-minded nations to uphold the rules-based trading system,” Farrell said.
He added that the Australian government is hopeful of forming new trade partnerships to reduce vulnerability to unilateral tariff actions by major powers.
Diplomatic Protests to the US
Farrell confirmed that he had raised Australia’s concerns directly with his American counterpart, Jamieson Greer, urging the complete removal of the tariffs.
“The position I’ve put to Jamieson Greer is that the tariffs imposed on Australia are unjustified,” he said. “We want all of them removed—not just a selective few.”
EU–Australia Defence and Trade Links Strengthen
In a parallel development, the European Union announced plans to pursue a defence partnership with Australia, aiming to deepen diplomatic and economic ties amid global instability, including the war in Ukraine.
The EU’s outreach is seen as part of a broader strategy to build resilient alliances that can jointly respond to geopolitical and economic shocks.
Australia’s pivot towards new trade alliances signals a shift in strategy aimed at economic self-reliance and diplomatic balance. As the world navigates a changing trade landscape marked by protectionism and political unpredictability, Australia is positioning itself to forge deeper, diversified, and rules-based international partnerships.
