Australia plans to curb more nuisance tariffs to encourage free trade

The Australian government has announced that it will cut another 500 tariffs, which it describes as nuisance tariffs, as part of a push to encourage free trade. Treasurer Jim Chalmers, Trade Minister Don Farrell and Industry and Innovation Minister Tim Ayres announced in Canberra today that the small tariffs on items including tyres, wine glasses and televisions will be removed. Minister Chalmers told reporters that the nuisance tariffs often do more harm than good. He said that current tariffs on tyres raise less than 80,000 Australian dollars in revenue every year, but that removing them will save businesses more than 32 million Australian dollars in compliance costs annually. The government in 2024 abolished 457 nuisance tariffs on items including certain vegetables, refrigerators and rubber. Further tariffs cuts were proposed during the government’s economic reform roundtable, which brought together business groups, trade unions and economists earlier in August to discuss ideas to stimulate Australia’s stagnating economic productivity.