Australia threatens countermeasures as Trump’s global tariffs hit 15%

Investing.com

Sun, February 22, 2026 at 3:10 PM GMT+9 2 min read

Investing.com – The Australian government has vowed to “examine all options” after President Donald Trump hiked the baseline tariff rate for imports to 15%. This sudden escalation came just 24 hours after a 10% rate was initially proposed, catching global markets off guard.

Trade Minister Don Farrell labeled the move “unjustified.” He signaled a potential rift between the close strategic allies. The shift follows a U.S. Supreme Court ruling that struck down the administration’s previous targeted tariff mechanism as illegal.

In response, the President pivoted to a blanket global tariff. While the initial 10% levy is slated to take effect at 12:01 a.m. EST on February 24, the timeline for the additional 5% remains unclear. This has created significant uncertainty for exporters with goods currently in transit.

Economic fallout and the Australian response

For Australia, the stakes are high. As a major exporter of iron ore, LNG, and agricultural products, a 15% tariff threatens the competitive edge of Australian goods in the American market. Minister Farrell confirmed the government is working with its Washington Embassy to assess the damage.

Market analysts suggest that “all options” could include formal World Trade Organization (WTO) disputes or retaliatory “tit-for-tat” tariffs on U.S. goods. Such a move would mark a rare trade confrontation between the AUKUS partners.

The blanket 15% approach suggests a “one-size-fits-all” strategy that ignores traditional bilateral favors. If Canberra moves forward with retaliation, it could impact multi-billion dollar energy and defense contracts currently under negotiation.

Market volatility and investor outlook

Investors are already reacting to the unpredictability. The Australian Dollar (AUD) faced immediate pressure as traders weighed the hit to the country’s trade balance. Mining and energy stocks have also turned cautious.

If the 15% rate is enforced without exemptions, Australian firms may be forced to pivot more aggressively toward Asian markets. This could lead to a further decoupling of the Western trade bloc.

All eyes are now on the February 24 deadline. If the White House fails to provide clarity on exemptions for allies, a formal trade war could be imminent. Analysts warn that these costs will likely be passed to U.S. consumers, potentially stoking inflationary fears.

_Reporting by Simon Mugo _

Related articles

Australia threatens countermeasures as Trump’s global tariffs hit 15%

Nvidia’s new Alpamayo project: What it means for Tesla?

Goldman expects lower but still attractive stock market returns in 2026

Terms and Privacy Policy

Privacy Dashboard

More Info