Earlier this year, the Supreme Court struck down President Donald Trump's tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling that he exceeded his authority by implementing them without congressional approval.
President Trump responded by turning to a new strategy and has followed through as the United States Trade Representative finalised its investigation into the forced-labour practices of 60 trading partners. This has led to new tariffs being imposed on key markets associated with the jewellery industry.
The US has introduced import tariffs of 10 per cent or 12.5 per cent on a variety of products, based on each country's level of compliance. Exemptions for loose coloured precious and semi-precious gemstones, natural pearls, and diamonds from the European Union, Cambodia, Indonesia, and Taiwan have been established.
However, elsewhere, products from Hong Kong and China are subject to an additional 12.5 per cent tax, while goods from Australia, Colombia and Thailand incur a 12.5 per cent levy.
Australian politicians have described the 12.5 per cent tariffs on local goods as unwarranted and unfair.
"Australia is a country that deals with the issue of modern slavery seriously," Trade Minister Don Farrell said.
"This imposition of higher tariffs on Australia is unjustified, and we will continue to lobby the United States trade representative to remove all tariffs on Australian goods."
The duty on gemstones and jewellery from India remains at 10 per cent.
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