Key Trump ally launches scathing attack on Australia

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A senior member of Donald Trump His cabinet has criticized Australia's biosecurity regulations, pointing out that they are a significant reason behind the 10 percent tariffs.

The Commerce Secretary Howard Lutnick stated that Australia's quarantine procedures were essentially acting as an obstacle for U.S. beef exporters.

'Our farmers are prevented from selling virtually anywhere — 1.4 billion individuals in India and we can't sell them corn; Europe won't let us sell beef; Australia won't let us sell beef,' he told CNN .

Australia, like the US, has biosecurity rules to keep out disease.

However, Mr. Lutnick, a banking tycoon who counsels Trump on trade policies, contended that these regulations were forms of protectionism, prompting the U.S. to retaliate accordingly.

He mentioned, 'They simply wish to safeguard things and argue, "What difference do the seeds make?"'

Come on, this doesn’t make sense at all. When we opened up our markets, trade increased, our farmers prospered, and grocery prices went down.

In 2024, beef, Australia’s largest export to the United States, will face a new 10 percent tariff despite numerous U.S. food businesses depending on this product to supplement their own meats, which have been in limited supply.

The United States is facing a drought, leading to reduced cattle populations and limiting beef production to primarily the more fatty, grain-fed type.

Australia's leaner, grass-fed beef is needed to make hamburger mince; a staple of the American diet, and made up 96 per cent of Australia's exports to the US last year.

Imposing a tariff on Australian beef exports would be more likely to push up food prices in the US rather than bolster local production if conditions do not allow it.

South American beef producing nations Argentina, Brazil and Chile, who are also battling a drought, have been hit with a 10 per cent tariff, like Australia.

Australia has had a free-trade deal with the US since 2005 but the Trump Administration argued measures like biosecurity, a Pharmaceutical Benefits Scheme and even the Goods and Services Tax are the equivalent of 'tariffs charged to the US'.

The 10 percent 'reciprocal tariffs' imposed on Australia were aimed at tackling an alleged trade discrepancy, even though the US has experienced annual trade surpluses with Australia since 1952.

Australian exports such as beef and gold to the U.S. saw a surge in early 2025, with American importers hastening to make deals before the implementation of the Trump tariffs.

Last year, meat was Australia's largest export to the U.S., with beef accounting for nearly $5 billion out of the total $6 billion worth of proteins shipped, which also included lamb and goat.

President Trump pointed out that the United States purchased $3 billion worth of Australian beef within a specific time frame, suggesting that stringent quarantine regulations in Australia were making things difficult for American meat exporters.

"Australia prohibits — and they’re lovely folks, truly wonderful in every aspect — but they prohibit U.S. beef," he stated while unveiling 'Freedom Day' tariffs at the White House.

'Nevertheless, we imported $3 billion worth of Australian beef from them solely last year.'

'They won't take any of our beef.

They aren't interested in it because they fear it might impact their local farmers – which I understand – yet we are currently taking similar actions.

In February, Australia reported a total trade surplus of $2.968 billion, marking the lowest figure since the onset of the pandemic in 2020, as calculated by subtracting import values from export values.

In early 2025, Australian exports to the United States temporarily surpassed those destined for China, prior to the imposition of US tariffs. However, since January, shipments to both major trade partners have experienced significant declines.

Mantas Vanagas, a senior economist at Westpac, stated that Australia's export trade might decelerate in 2025 due to U.S. tariffs.

"In light of substantial changes in international trade policies, the risk leans toward an even more adverse effect on the trade balance," he stated.

The most recent 10 percent tariffs on Australian goods exported to the U.S. were imposed following the 25 percent duties on Australian steel and aluminum, which took effect on March 12.

An American research company called Evercore has calculated that the average U.S. tariff rate currently stands at around 29 percent, surpassing the 20 percent mark seen in 1930 after the implementation of the Smoot-Hawley Tariff Act during the Great Depression era.

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