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June 6, 2025executive ordertrade policyinternational agreementsforeign policytrade policyinternational lawforeign policy

USTR breaches the Australia-U.S. free trade agreement with a unilateral 10% tariff

The US Trade Representative imposed a 10 percent across-the-board tariff on Australian goods, breaching the 2005 Australia-United States Free Trade Agreement which had eliminated tariffs on virtually all bilateral trade. Australian Prime Minister Anthony Albanese called the tariff "unjustified and contrary to our bilateral commitments." USTR Howard Lutnick argued the administration had authority to suspend treaty obligations under executive national security powers, a claim Australian trade lawyers disputed.