Australian wheat causing US ‘national security’ issues, with Donald Trump urged to impose tariffs
U.S. agricultural bodies are urging President Donald Trump to impose tariffs on Australia’s wheat exports, citing national security concerns over reliance on imports. The Kansas Association of Wheat Growers argued that Australian wheat has driven prices below production costs, harming U.S. farmers. Similarly, U.S. winemakers and beef producers have raised concerns over Australian trade practices, pushing for reciprocal tariffs. Trump is expected to announce plans by April 2.
United States President Donald Trump is being urged to impose tariffs on Australia’s wheat exports, with the American industry arguing an over-reliance on imports was a risk to national security.
Joining the list of US agricultural bodies urging Washington to slug Australian goods with imposts, the Kansas Association of Wheat Growers – representing the country’s biggest wheat growing state – wrote in a submission to the White House that imported vital gluten and protein had “injured” US farmers.
Specifically listing Australia alongside the EU, Canada, Russia and China, the association said imported product had “decreased prices at the farm gate… and has caused unfair competition for domestic vital wheat protein manufacturers in the heartland of the United States” at the same time as demand had increased.
“Pressure created by these imports on US wheat protein markets has caused prices to fall, at times below production costs. US production has been forced to scale back, causing job loss and reduced demand and value of US grown wheat,” chief executive Justin Gilpin wrote.
He said tariffs on imported what protein were “minimal”, and that over $500m worth of blends or mixes had impacted US manufacturers and growers.
“Our American wheat industry is not only a food security issue but a national security issue that needs to be prioritised by our government. We ask for help so that imports of vital wheat gluten and wheat from unknown production areas stops negatively impacting our nation’s wheat farmers,” Mr Gilpin said.
“We need help from our president in prioritising and embracing a national wheat security plan for our farmers and agriculture economy.”
In 2023, Australia exported $303m worth of wheat gluten products to the US, accounting for 2.27 per cent of all exports.
American winemakers are also demanding Mr Trump punish Australia with new tariffs, with the California Association of Winegrape Growers criticising the Australian Government over the 29 per cent tax on wine sales as among a number of “unfair, non-reciprocal trade practices” disadvantaging US producers.
Australian beef producers are also in the firing line, with US industry heavyweights arguing Australia benefits from a free-trade agreement but does not import enough of the products.
Mr Trump is due to announce by April 2 plans to impose “reciprocal tariffs” on countries who impose what he considers “unfair trade practices”, like Australia’s GST.
The president is also being lobbied by big pharma – who have accused Canberra of making it too difficult for foreign companies to list drugs on the PBS, and US tech giants – who have labelled Australia’s News Media Bargaining Incentive as “coercive”.
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Source : The Nightly
