Australia challenges 12.5% tariff imposed by US

·       The US administration imposed a 12.5% tariff on Australian exports over supply chain forced labour allegations.

·       Energy markets reacted as Brent Crude climbed to US$91 a barrel and domestic petrol reached $2.25 a litre.

·       The Australian government pledged to challenge the tariffs across diplomatic channels while refusing to extend fuel tax relief.

The United States introduced a 12.5% tariff on Australian exports, while Brent Crude rose to US$91 a barrel.

The measure targets 60 economies that the US administration claims failed to enforce sufficient prohibitions on forced labour.

"These are unjustified," said Australian Prime Minister Anthony Albanese.

Domestically, average capital city unleaded petrol prices rose 18 cents to $1.70 a litre, with premium grades reaching $2.25 a litre in Melbourne.

The Australian government stated that existing modern slavery legislation remains robust and will be strengthened with higher penalties.

Federal leaders confirmed there are no plans to extend temporary fuel tax relief before its August 2 expiration date.