Labor prepares to challenge Trump administration at World Trade Organization over tariffs

The Albanese government is preparing to take the United States to the World Trade Organization if Australia is swept up in Donald Trump's "Liberation Day" tariffs.

Ahead of tomorrow's announcement, the Trump administration has expanded its list of grievances against Australia suggesting the Pharmaceutical Benefits Scheme, the news media bargaining code and biosecurity rules amount to non-tariff trade barriers for American companies.

Australia is anticipating tariffs of up to 20 per cent on all exports to the US, although the government is stressing to industry that there is still enormous uncertainty about the final outcome.

Prime Minister Anthony Albanese has said bluntly that Australia's policies are not up for negotiation and defended the fact that he had not spoken to Donald Trump since February, arguing "phone calls come together when things are agreed".

"We are certainly prepared tomorrow for whatever outcome is determined, and you'll see that tomorrow," he told reporters in Melbourne.

Having ruled out reciprocal tariffs, the Albanese government has been considering a range of responses to an "adverse decision" by the United States, including taking Australia's closest security ally to the WTO, just as it did with China during the pandemic-era trade disputes.

Australia imposes zero tariffs on American imports and has a long-standing Free Trade Agreement with Washington.

Mr Albanese wouldn't elaborate on Australia's next steps but today played down the significance of the US market to the broader economy.

"Australia's exports to the United States represent under 5 per cent of our goods exports," he said.

Trade Minister Don Farrell briefed dozens of agriculture and business groups yesterday and will hold further briefings with red meat lobby groups today, in anticipation of tomorrow's tariffs.

Australia's biggest exports to the US are beef and other meats, precious gemstones and pharmaceuticals.

"I stood up for Australia when they put on aluminium and steel tariffs," Mr Albanese said.

"I continue to stand up for Australia and have said very clearly that we won't compromise and negotiate on our PBS, on our biosecurity, on our Media Bargaining Code."

Story by Jane Norman and Stephen Dziedzic 

Original story : https://www.abc.net.au/news/2025-04-02/government-could-challenge-trump-at-world-trade-organisation-/105127142