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Sunday, Feb 22, 2026

Australia Reviews Response Options After Washington’s ‘Unjustified’ Tariffs

Canberra says it is considering all avenues to address fresh U.S. duties as trade ties with its closest ally face fresh strain
Australia has reiterated that the United States’ recently announced tariffs on imported goods, described by Canberra as “unjustified”, will prompt a comprehensive review of possible responses, as officials assess economic and diplomatic implications.

The Australian government said in a statement it is working closely with its embassy in Washington to “assess the implications and examine all options” after U.S. President Donald Trump announced an increase in import duties that could apply broadly to trading partners.

Trade Minister Don Farrell emphasised Australia’s long-standing commitment to free and fair trade and made clear that Canberra regards the imposition of tariffs on Australian goods as inconsistent with the spirit of the longstanding alliance between the two nations.

He said the government was considering the full range of diplomatic and legal avenues available, including engagement with U.S. officials during his upcoming visit to the United States for the G’Day USA business and cultural exchange events.

The Australian reaction follows earlier assertions from Prime Minister Anthony Albanese that U.S. levies on Australian steel and aluminium were “entirely unjustified” and described by senior ministers as counterproductive to both countries’ economic interests.

Australia has chosen not to retaliate with its own tariffs in the past, even when duties were applied without exemption, arguing that reciprocal measures would harm consumers and escalate trade tensions.

Opposition figures in Canberra have also voiced concern about the potential economic effects of higher U.S. duties, saying they could raise costs for consumers and disrupt parts of the bilateral trade relationship.

Despite the tensions over trade policy, Australia remains a close security partner of the United States, underscoring a complex mix of cooperation and friction.

Canberra is now pressing for continued high-level dialogue with Washington in the days ahead, with trade officials and ministers preparing to explore negotiation and dispute-settlement mechanisms under international trade rules, while also seeking to diversify export markets to mitigate the impact of any sustained tariff regime.
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