The Australian government has vowed to respond accordingly after US President Donald Trump used a little-known trade law to reimplement his sweeping tariffs, set to take effect in just days.
The US Supreme Court ruled Trump's trade policies unconstitutional on Friday in a landmark 6-3 ruling.
He then became the first president to invoke Section 122 of the Trade Act of 1974, which allows Congress to permit Trump to levy tariffs of up to 15 per cent for up to 150 days to fix 'fundamental international payments problems'.
'It is my Great Honor to have just signed, from the Oval Office, a global 10 per cent Tariff on all Countries, which will be effective almost immediately. Thank you for your attention to this matter,' Trump wrote on Truth Social.
Tariffs can only stay in place for 150 days without congressional approval.
The White House said that the temporary import duty will take effect on February 24.
It's been 10 months since the US imposed a 10 per cent 'baseline' reciprocal tariff on most goods imported from Australia, a move Prime Minister Anthony Albanese branded at the time as 'not the act of a friend'.
Certain Australian exports remain subject to larger duties under other US laws, including steel, aluminium, cars, vehicle parts and upholstered furniture.
Donald Trump used a little-known trade law to reimplement his sweeping tariffs after the US Supreme Court ruled his trade policies unconstitutional
While one expert believes the new global tariffs are unlikely to have a major impact for Australia beyond existing US trade policy measures, ongoing uncertainty is not desirable
Australian Trade Minister Don Farrell vowed to continue to lobby against tariffs in the wake of Trump's latest move.
'Australia believes in free and fair trade,' he told Daily Mail in a statement on Saturday.
'We have consistently advocated against these unjustified tariffs.
'We are working closely with our Embassy in Washington to assess the implications and examine all options.'
Monash University economist Professor Robert Brooks believes the global tariffs are unlikely to have a major impact for Australia beyond existing US trade policy measures.
But he admitted that the ongoing uncertainty is not desirable for global trade and the international economy.
'The 10 per cent rate is consistent with the base rate on many countries and those who have trade deals,' Professor Brooks said.
'There is also the issue that these tariffs are only temporary (150 days) without congressional action.
Australian Trade Minister Don Farrell vowed to continue to lobby against the 'unjustified' tariffs
Another expert said that while tariffs may not hit every Australian business directly, the uncertainty will impact on them
'Such action by Congress is complex in the current political climate in the US. The most significant impact is the ongoing uncertainty about the settings of US trade policy.'
'In general, uncertainty is undesirable for both consumer confidence and business investment.'
Michigan Professor Justin Wolters, who is a visiting professor at the University of NSW believes there will be tariffs on products rather than countries going forward.
EY partner and global trade Oceania leader Luke Branson said that while tariffs may not hit every Australian business directly, the uncertainty will impact them.
'That's why I've been spending so much time tracking and monitoring these developments - because business leaders are already carrying the burden of uncertainty, and staying up to date is critical to making confident decisions in an increasingly volatile global market,' he told the Australian Financial Review.
Australian businesses could see a refund after Trump's tariffs were deemed illegal.
EY Australia modelling shows Australian exporters would be owed more than $1.4 billion in refunds collectively if the tariffs were struck down.
However, the onus would be on Australian exporters to seek refunds.
Some Australian exports remain subject to larger duties under other US laws, including steel and aluminium
'Legal analysts are doubtful about the powers under this particular legislation providing the president the authority to impose tariffs,' Mr Branson told the ABC.
'This particular statute allows the president to regulate imports … but it doesn't explicitly say that the president can impose tariffs.'
He also warned that the Trump administration will likely seek to avoid paying back exporters.
'There's a lot of talk by legal analysts in the US that the president might impose other measures … under other legal avenues, lawful legal avenues that he has used in the past, to basically backdate tariffs so that he doesn't have to provide refunds,' Mr Branson said.
