Australia worse off under new US tariff plans: Minister

Spanish Market: Agriculture, Chemicals
23/02/26

The US Trump administration's plan for a new 15pc global tariff will hamper Australia's recent uptick in trade to the country, Australia's federal trade minister Don Farrell said, while New Zealand's exporters may experience a net benefit.

The US should work within the free trade agreement (FTA) it holds with Australia, Farrell said on 23 February, ahead of his visit to Los Angeles this week. His comments came after the US Supreme Court struck down tariffs imposed under the country's International Emergency Economic Powers Act (IEEPA) on 20 February, blocking US president Donald Trump's ability to extract concessions from trading partners and punish countries that reject his demands.

The White House has responded by pledging to increase the US' global tariff from 10pc to 15pc, effectively increasing the cost of Australian goods in the US by 5pc.

Trade with the US has increased since the "liberation day" tariffs were first imposed in April 2025, Farrell said, but this competitive advantage may be lost under the new policy.

Tariffs that previously targeted specific countries, including the additional 40pc duty on some Brazilian products, have been reduced to 10pc since 20 February 2025. This puts Brazilian products, such as tallow, on the same tariff rate that Australia has long held, removing the advantage Australian suppliers previously held with US importers.

The 15pc rate will not apply to Australia's beef exports, the Australian Meat Industry Council (AMIC) said. But sheep and goat meat exports face a 5pc tariff increase under the plan. The comparative advantage held by the nation's red meat exporters appears lost, the AMIC added.

Beef volumes entering the US from Brazil and New Zealand appear to have declined in recent months, while shipments from Australia hit the highest monthly volume since January 2003 in November.

The newly announced plan for further tariffs should provide impetus to Australia's long-stalled FTA negotiations with the EU, Farrell said. The FTA is held up on key agricultural market access issues, which has long hampered freer trade between the bloc and Australia.

New Zealand better off

New Zealand's exports to the US have faced a 15pc so-called reciprocal tariff since August 2025, while competitors such as Australia, Argentina and the UK faced tariffs maintained at 10pc.

New Zealand is now level on this measure apart from country-specific deals, business lobby ExportNZ said.

The 15pc tariff imposed on many New Zealand exporters is unwarranted, New Zealand's trade minister Todd McClay said on 21 February, given the average tariff rate for to US goods entering New Zealand is 0.3pc.

By Tom Major and Grace Dudley

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

22/02/26

Trump threatens 15pc tariff on all US imports

Washington, 21 February (Argus) — President Donald Trump on Saturday said he will slap a 15pc tariff on all US imports, less than 24 hours after his administration unveiled a 10pc global import tax meant to replace the emergency tariffs struck down by the Supreme Court on Friday. Trump, in a social media post, said that he "will be, effective immediately, raising the 10pc Worldwide Tariff on Countries, many of which have been 'ripping' the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15pc level". Trump cited "a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued" on Friday as a justification for his decision. The White House has yet to release an official record of any decision to implement Trump's 15pc tariff threat. Trump on Friday had to rescind executive orders he signed in the past year that imposed tariffs by invoking the economic emergency authority that the Supreme Court found to be illegal. Trump, in a separate proclamation on Friday, invoked Section 122 of the 1974 Trade Act to impose a 10pc tax on all US imports from 24 February. Trump's decision on Friday exempted energy, critical minerals, fertilizers and certain agricultural imports from new import taxes. The 10pc tax, which was to be in effect for 150 days — until 24 July — exempted imports eligible for duty-free treatment under the US-Mexico-Canada free trade agreement (USMCA). Why 10pc or 15pc? It is not clear why Trump announced on Saturday that he would raise the Section 122 tariff to the maximally allowed 15pc, or why his administration initially chose a lower rate, at 10pc. The Trump administration had signaled since mid-January that it would opt for a 10pc tariff under Section 122 authority if the Supreme Court struck down Trump's emergency tariff. The Trump administration said it was planning to use the 150-day duration of the Section 122 tariffs to rapidly put in place other tariffs targeting specific industries and countries under existing, previously used trade authorities. While Trump said that his Section 122 tariff authority is "legally tested", no other president has invoked this power, and US courts have not weighed on its merits before. But Supreme Court justice Brett Kavanaugh, who dissented from the majority decision that struck down Trump's emergency tariffs, cited Section 122 five times in his separate opinion issued on Friday. Kavanaugh argued that since Congress delegated to the executive branch broad tariff authority to impose tariffs under Section 122 and multiple other laws, there was no reason to dispute Trump's authority to impose tariffs by invoking economic emergencies. Trump on Saturday called Kavanaugh "my new hero", together with two other justices who voted to uphold Trump's tariffs. Trump continued to lob insults at conservative justices who voted to strike down his tariffs, calling them "fools" and "lapdogs" of "radical left Democrats". More court action likely Despite criticism of the court's decision, Trump and his top officials have tried to put a positive spin on the ruling by arguing that he will instead impose "stronger" tariffs and raise even more revenue. But his Section 122 tariffs likely will face challenges in courts. The Supreme Court's majority opinion hinged on the finding that Congress did not explicitly authorize Trump to impose taxes, in the form of tariffs, under the legal authority he has cited. Chief justice John Roberts and two of the justices Trump appointed during his first term, Neil Gorsuch and Amy Coney Barrett, also referenced the "major questions" doctrine to justify their decision, meaning that Congress, not the White House, should decide on matters of major economic significance. Trump has left little doubt that he plans to bypass Congress in rolling out new tariffs. "I have the right to do tariffs," he said on Friday. "We have a right to do pretty much what we want to do." The Republican-led US Congress has not challenged Trump's tariff authority to date, although lawmakers have increasingly voiced concerns about the effect of tariffs on prices. In the House of Representatives, where the Republican majority has shrunk to one, several Republican members have expressed support for the Supreme Court's decision. Trump on Saturday blasted one of those lawmakers, Jeff Hurd (R-Colorado), for "a lack of support, in particular for the unbelievably successful TARIFFS imposed on Foreign Countries and Companies". Trump endorsed Hurd's opponent in the upcoming Republican primary. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

New Trump tariffs to exempt energy, metals, USMCA

21/02/26

New Trump tariffs to exempt energy, metals, USMCA

Washington, 20 February (Argus) — President Donald Trump will enact a 10pc tax on all US imports from 24 February to replace the emergency tariffs struck down by the Supreme Court on Friday, but the new tariffs will exempt energy, critical minerals, fertilizers and certain agricultural imports. The new 10pc tax, which will be in effect for 150 days — until 24 July — will also exempt imports eligible for duty-free treatment under the US-Mexico-Canada free trade agreement (USMCA). Trump's proclamation of the new tariff invokes Section 122 of the 1974 Trade Act, which allows imposing tariffs of up to 15pc to address a balance of payments issue. The Section 122 tariffs will also exempt "natural resources and fertilizers that cannot be grown, mined, or otherwise produced in the US", according to a White House fact sheet. Trump's proclamation also exempts beef, oranges and tomatoes from the 10pc tariff. The new tariff will not apply to steel, aluminum, cars, auto parts and any other products subject to sectoral tariffs Trump's administration has imposed in the past year or plans to tax in the future. Trump directed the US Trade Representative's office (USTR) to immediately launch "Section 301" investigations to justify future tariffs directed at specific, yet unnamed countries. A Section 301 investigation would target a specific country on the grounds that it is discriminating against US exports. China almost certainly would be subject to import taxes under this rubric. USTR launched a Section 301 investigation against China last October, citing its lack of compliance with the 2020 US-China deal. The Supreme Court earlier on Friday threw out most of the tariffs Trump has imposed on nearly all US trading partners, finding his ability to unilaterally impose tariffs under the pretext of economic emergencies exceeded his powers under a decades-old law. Uncertainty ahead The announcement of exemptions for USMCA, energy and other products addresses concerns raised by US importers in the wake of the Supreme Court rulings. The exemption regime is the same established under the emergency tariffs Trump applied since last year. But Trump's choice of the legal avenue for reverse-engineering the now invalid emergency tariffs points to more uncertainty ahead. The administration can impose those tariffs only for a period of 150 days, according to law. Any extensions would require explicit authorization from Congress. "Is the 150 day limit an actual limit? We'll see," Georgetown University law professor Kathleen Claussen said on Friday. No president has previously invoked Section 122 to impose tariffs, and "it's hard to see what would stop him from trying to" unilaterally extend it by a further 150 days, she said during a webinar hosted by WITA - The International Trade Membership Association. The Republican-led US Congress has not challenged Trump's tariff authority to date, although lawmakers have increasingly voiced concerns about the effect of tariffs on prices. The House of Representatives and the Senate have voted on separate resolutions challenging the tariffs Trump has imposed on imports from Canada and Brazil, but they have not passed any tariff legislation. "Congress and the administration will determine the best path forward in the coming weeks" with respect to tariffs, House of Representatives speaker Mike Johnson (R-Louisiana) said. But Trump likely would have trouble finding enough votes on Capitol Hill to support his tariffs. "The president must refrain from any further unilateral action on tariffs," House Democratic leader Hakeem Jeffries (D-New York) said. No clarity on refunds Trump on Friday also signed an executive order formally rescinding all his previous tariffs that were imposed by invoking the economic emergency authority that the Supreme Court found to be illegal, including those on Brazil and those threatened against countries doing business with Iran. The US will immediately stop collecting duties imposed under the emergency tariffs. But the order makes no mention of any mechanism to refund the previously collected emergency tariff revenues. Trump said earlier today he is expecting a years-long court fight over whether his administration must refund an estimated $175bn in emergency tariffs. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US high court strikes down Trump's tariffs: Update

20/02/26

US high court strikes down Trump's tariffs: Update

Updates with details throughout Washington, 20 February (Argus) — The US Supreme Court has thrown out most of the tariffs President Donald Trump has imposed on nearly all US trading partners, finding his ability to unilaterally impose tariffs exceeded his powers under a decades-old law. The Supreme Court's 6-3 ruling released on Friday will block Trump's ability to use tariffs under the International Emergency Economic Powers Act (IEEPA) to extract concessions from trading partners and punish countries that reject his demands. The Constitution "did not vest any part of the taxing power in the executive branch," chief justice John Roberts wrote in the majority opinion, backed by two other conservative justices and all three liberal justices. Trump, speaking hours after the court announced its ruling, raged against the justices who overturned his tariffs. "I'm ashamed of certain members of the court for not having the courage to do what's right for our country," Trump said. "It's an embarrassment to the families" of justices Neil Gorsuch and Amy Coney Barrett, he said. Trump appointed both justices during his first term. The majority opinion noted that "the Framers gave 'Congress alone' the power to impose tariffs during peacetime." Trump "must 'point to clear congressional authorization' to justify his extraordinary assertion of that power," the majority opinion said, adding that "He cannot." Trump scoffed at the opinion. "The court said that I'm not allowed to charge even one dollar under IEEPA", he said and suggested that the six justices were "swayed by foreign interests". What is affected? The Supreme Court decision affects Trump's tariffs on Mexico, Canada and China, where he cited an economic emergency created by the three countries' alleged inaction to stop the flow of fentanyl drugs into the US. The Supreme Court ruling also strikes down Trump's most extensive action — imposing tariffs of at least 10pc on nearly every US trading partner to address the "economic emergency" of persistent US trade deficits. The Supreme Court's decision also will affect the tariffs Trump imposed on imports from Brazil, US government lawyers informed the Court of International Trade last month. Trump cited Brazil's alleged suppression of freedom of speech as a reason to impose tariffs. The decision will not affect tariffs on US imports of steel, aluminum, cars and auto parts, which Trump imposed by citing well-tested legal trade authorities. Next steps Trump said he will sign an executive order later on Friday to impose a 10pc broad tariff on all US trading partners, in place of the struck down IEEPA tariffs. Trump said that action will invoke Section 122 of the 1974 Trade Act, which allows imposing tariffs of up to 15pc to address a balance of payments issue. But that legal avenue comes with limitations. The administration can impose those tariffs only for a period of 150 days. Any extensions would require explicit authorization from Congress. The Republican-led US Congress has not challenged Trump's tariff authority to date, although lawmakers have increasingly voiced concerns about the effect of tariffs on prices. The House of Representatives and the Senate have voted on separate resolutions challenging the tariffs Trump has imposed on imports from Canada and Brazil, but they have not passed any tariff legislation. "Congress and the administration will determine the best path forward in the coming weeks" with respect to tariffs, House of Representatives speaker Mike Johnson (R-Louisiana) said. But Trump likely would have trouble finding enough votes on Capitol Hill to support his tariffs. "The president must refrain from any further unilateral action on tariffs," House Democratic leader Hakeem Jeffries (D-New York) said. Trump said he does not plan to work with Congress on tariffs. "I have the right to do tariffs," he said. "We have a right to do pretty much what we want to do." The Trump administration will also quickly begin the legal process for replicating the IEEPA tariffs with "Section 202" and "Section 301" tariffs, US trade representative Jamieson Greer said, speaking alongside Trump. A "Section 232" authority allows the Commerce Department or US Trade Representative's office to determine whether imports of a product need to be curbed on national security grounds. A Section 301 investigation would target a specific country on the grounds that it is discriminating against US exports. In both cases, the process for imposing tariffs can take months. It also requires public consultation and allows carveouts for the affected US importers. The use of Section 232 and 301 authorities is "a little more complicated" than IEEPA, and "those will also be challenged", Trump's former trade representative Bob Lighthizer told participants at the Argus Americas Crude Summit in Houston on 4 February. Trump's administration will have its work cut out for it in deciding how, and whether, to refund an estimated $175bn in tariffs collected using IEEPA tariffs. Trump in his remarks suggested that the refund process could take years. Hundreds of companies, including refiners Valero and Marathon Petroleum, have already filed lawsuits seeking to recover the tariffs. The effective US tariff rate was around 13pc as of late 2025, up from 2.6pc a year earlier, according to research published by the Federal Reserve Bank of New York on 12 February. US companies and consumers paid about 90pc of the tariff burden, with only a fraction absorbed by foreign producers, the Fed researchers found. Foreign governments did not immediately react to the US court's tariff decision. "We take note of the ruling," the EU said. "We remain in close contact with the US administration as we seek clarity on the steps they intend to take in response to this ruling." By Haik Gugarats and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

End of tariffs could boost US organic corn imports

20/02/26

End of tariffs could boost US organic corn imports

Minneapolis, 20 February (Argus) — The US Supreme Court's ruling to strike down most US import tariffs implemented last year could boost organic corn imports, but the US government could reimpose tariffs through other laws. The Supreme Court released its 6-3 decision Friday that blocked President Donald Trump's ability to use tariffs under the International Emergency Economic Powers Act (IEEPA). Trump threatened in a press conference to impose 10pc tariffs under other legal justifications, which leaves the future of tariffs unclear, but the market was already anticipating impacts. Organic corn imports fell by 27pc in the 2024-25 marketing year ended 31 August because of strong supplies earlier in the season, but the US organic corn market has been tight since then. US organic corn imports were also 17pc behind pace for the first five months of the 2025-26 marketing year. Organic corn imports to the US from the Black Sea in particular could see an increase following the court ruling since it's the only region with significant excess volumes. Exporters in the Black Sea kept corn export volumes low for the start of the 2025-26 marketing year because of the difficulty competing with US-grown supplies, but the end of the 15pc tariff enacted under IEEPA will make them more competitive. Cheaper organic corn imports will weigh on domestic organic corn prices because US farmers will have to compete with lower import prices. Argentina does not have significant volumes left to export, but the end of tariffs would allow buyers to boost bids into Argentina. This could encourage more organic corn planting during the South American country's next planting cycle. Argentinian exporters are offering organic corn for export in June after their early harvest, and the end of tariffs will boost revenues for organic growers in Argentina. Organic soybean impact subdued The end of US import tariffs is unlikely to boost organic soybean import volumes, but will lower the cost paid by importers, market contacts said. US organic soybean imports continued to grow despite the tariffs, Argus data show, up by 41pc in the 2024-25 marketing year ended 31 August and up by 54pc for the first five months of the 2025-26 marketing year. Strong demand, especially from the organic poultry sector, drove up import volumes even as tariffs pushed up costs. The volume imported in recent months weighed heavily on prices and put the spot market in a surplus, so exporters are unlikely to increase volume further. But the end of the tariffs will reduce costs, which will translate into lower import values. Cheaper imported meal will weigh on domestic meal prices, which will cut into domestic crush margins. But imported soybeans will no longer be subject to tariffs, which will add to returns for crushers who rely on imported soybeans. Canadian soybean exporters will be unaffected, since they already paid no tariffs, but Canadian meal exports to the US may fall if Canada is no longer the only country that can export organic soymeal to the US tariff-free. By Alexander Schultz Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US Supreme Court strikes down Trump's tariffs

20/02/26

US Supreme Court strikes down Trump's tariffs

Washington, 20 February (Argus) — The US Supreme Court has thrown out most of the tariffs President Donald Trump has imposed on nearly all US trading partners, finding his ability to unilaterally impose tariffs exceeded his powers under a decades-old law. The Supreme Court's 6-3 ruling released on Friday will block Trump's ability to use tariffs under the International Emergency Economic Powers Act (IEEPA) to extract concessions from trading partners and punish countries that reject his demands. Trump has already pledged to find other ways to maintain tariffs, although the alternative leaves the administration with fewer, more time-constrained options than IEEPA, the 1977 law the administration has used to impose across-the-board tariffs on most imports. The Constitution "did not vest any part of the taxing power in the executive branch," chief justice John Roberts wrote in the majority opinion. The Supreme Court decision affects Trump's tariffs on Mexico, Canada and China, where he cited an economic emergency created by the three countries' alleged inaction to stop the flow of fentanyl drugs into the US. The Supreme Court ruling also strikes down Trump's most extensive action — imposing tariffs of 10pc and higher since 5 April 2025 on nearly every US trading partner to address the "economic emergency" of persistent US trade deficits. The Supreme Court's decision also will affect the tariffs Trump imposed on imports from Brazil, US government lawyers informed the Court of International Trade last month. Trump cited Brazil's alleged suppression of freedom of speech as a reason to impose tariffs. The decision will not affect tariffs on US imports of steel, aluminum, cars and auto parts, which Trump imposed by citing well-tested legal trade authorities. Next steps Trump and his economic team had recently stepped up public advocacy for the Supreme Court to leave his trade policy in place, highlighting the key role tariffs play in his foreign policy and in federal revenue generation. "I'm waiting for a decision from the Supreme Court," Trump said on Thursday. "Without tariffs, what would you do? Everybody would be bankrupt, everybody, the whole country would be bankrupt." But his administration has prepared for the possibility of the Supreme Court striking down the tariffs. The US Trade Representative's office in the past month quickly wrapped up trade deals with most major US trade partners that had languished for months. Trade deals struck with India, Indonesia, Taiwan and Vietnam call on those countries to increase energy and other imports from the US. The administration now is expected to try to quickly enact a 10pc tariff after the Supreme Court's decision because of the negative ruling, probably by invoking Section 122 of the 1974 Trade Act, which allows imposing tariffs of up to 15pc to address a balance of payments issue. But that legal venue comes with limitations. The administration can impose those tariffs only for a period of 150 days. Any extensions would require explicit authorization from Congress. The Republican-led US Congress has not challenged Trump's tariff authority to date, although lawmakers have increasingly voiced concerns about the effect of tariffs on prices. The House of Representatives and the Senate have voted on separate resolutions challenging the tariffs Trump has imposed on imports from Canada and Brazil, but they have not passed any tariff legislation. The money question The US has collected nearly $284bn in customs duties since the start of Trump's second term, up by $204bn from the year-earlier period, according to data from the US Treasury Department. Hundreds of companies, including refiners Valero and Marathon Petroleum, have already filed lawsuits seeking to recover the tariffs. The effective US tariff rate was around 13pc as of late 2025, up from 2.6pc a year earlier, according to research published by the Federal Reserve Bank of New York on 12 February. US companies and consumers paid about 90pc of the tariff burden, with only a fraction absorbed by foreign producers, the Fed researchers found. By Haik Gugarats and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more

Australia worse off under new US tariff plans: Minister

New Zealand better off

Related news posts

Trump threatens 15pc tariff on all US imports

Trump threatens 15pc tariff on all US imports

New Trump tariffs to exempt energy, metals, USMCA

New Trump tariffs to exempt energy, metals, USMCA

US high court strikes down Trump's tariffs: Update

US high court strikes down Trump's tariffs: Update

End of tariffs could boost US organic corn imports

End of tariffs could boost US organic corn imports

US Supreme Court strikes down Trump's tariffs

US Supreme Court strikes down Trump's tariffs

Argus Recycled Polymers Outlook

Argus Recycled Polymers Outlook

Argus Methanol

Argus Methanol

Argus Brazil Grains and Fertilizer

Argus AgriMarkets Outlook France

Argus AgriMarkets France

Business intelligence reports