Australia politics live: Matt Canavan says US tariffs have ‘fig leaf of a justification’; Greens condemn Jim Chalmers’ ‘Henry VIII powers’

From 36m agoMatt Canavan says US tariffs have ‘fig leaf of a justification’

Josh Butler

The Nationals leader, Matt Canavan, says “Labor must push back on Trump’s new tariffs”, arguing they’re unfair and a breach of the free trade agreement.

Canavan has given the most muscular opposition to America’s proposed tariffs, announced yesterday by the US trade representative. In a statement he claimed the trade barriers were “unjustified and a clear breach of the Free Trade Agreement Australia has with the US”.

“We are great friends with Americans but these latest tariffs are based on a fig leaf of a justification,” Canavan said.

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Just weeks after the US supreme court struck out the Trump administration’s first tariffs, the US launched an investigation of whether Australia fails to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.

Canavan noted that Australia has strict laws against the use of forced labour and modern slavery, and that the US investigation “has not provided detailed evidence that Australia fails to stop products made with forced labour”.

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Its report is a smokescreen to justify tariffs it clearly intended to put on in any case.

Tim Wilson, the Liberal shadow treasurer, says cutting tobacco excise should be “part of the solution” to eliminating the black market for cigarettes.","elementId":"8aad1b3f-6f82-4e20-9591-482338a9f12c"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

New data yesterday revealed 80% of cigarettes smoked by the nation last year were sourced illegally, meaning they did not attract the excise. Legal cigarettes are typically far more expensive, mostly due to the heavy tax.","elementId":"59df92c6-c45e-44d7-b5b5-2ab0d334625f"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Speaking on ABC Radio Melbourne this morning, Wilson said:","elementId":"9b054cd3-4105-486b-9e07-6553e257e356"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n

No one can tell me how much we need to cut excise to get the illegal tobacco out. About 12 months ago, there was talk of it being somewhere around 30% [cut] would get the illegal gangs out. Now it seems like it’s closer to 60%. And so it’s clearly got to be part of the solution …\n

We haven’t reached a formal position, but there’s absolutely an appetite from a lot of my colleagues that something needs to be done.\n","elementId":"06d8a0c8-781c-409e-847c-644417582cf9"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Illicit cigarette consumption doubled from 2016 to 2019 then doubled again by the end of 2022. Both Coalition and Labor governments have hiked the excise. Wilson denied the former Coalition government’s excise increases were responsible for the growth.","elementId":"56ce7e35-4260-4b35-8ff6-ac3c6b56b8a3"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n

It’s been a trajectory consistently over multiple governments to do this. And it’s quite clear that it isn’t working and is now fueling behaviour.\n","elementId":"33bff510-618a-49bd-b6b4-d9f0b55baf9b"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

An excise cut would mean legal cigarettes face less tax, potentially boosting big tobacco companies’ sales and profits. Wilson said:","elementId":"860b804c-adc9-456e-831d-33c8d5e00f37"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n

Well, presently, the people who are profiteering most are legal gangs and organised crime. They then go to do things like fund terrorism and anti-Semitism and social disruption. And so, in a choice between the two very bad options, ones who actively subvert the law and harm other Australians are absolutely worse.\n","elementId":"0a5caf8c-cb6c-4a25-972b-092033066974"},{"_type":"model.dotcomrendering.pageElements.RichLinkBlockElement","prefix":"Related: ","text":"Nicotine use soars by 40% in eight years as Australian black market explodes","elementId":"ade2d288-d739-4fda-81fd-e77294202ea1","role":"thumbnail","url":"https://www.theguardian.com/australia-news/2026/jun/03/illegal-tobacco-news-australia-spending-less-to-consume-more-nicotine"}],"attributes":{"pinned":false,"keyEvent":true,"summary":false},"blockCreatedOn":1780537121000,"blockCreatedOnDisplay":"03.38 CEST","blockLastUpdated":1780538310000,"blockLastUpdatedDisplay":"03.58 CEST","blockFirstPublished":1780538310000,"blockFirstPublishedDisplay":"03.58 CEST","blockFirstPublishedDisplayNoTimezone":"03.58","title":"Federal Liberals want to cut tobacco excise, says Wilson","contributors":[{"name":"Luca Ittimani","imageUrl":"https://i.guim.co.uk/img/uploads/2025/04/30/Luca_Ittimani.jpg?width=300&quality=85&auto=format&fit=max&s=d5a0ce308e8f38b7531e9b5e5f71dc21","largeImageUrl":"https://i.guim.co.uk/img/uploads/2025/04/30/Luca_Ittimani.png?width=300&quality=85&auto=format&fit=max&s=b269ad3cfa5a0e929b1c0afc69304369"}],"primaryDateLine":"Thu 4 Jun 2026 04.02 CEST","secondaryDateLine":"First published on Wed 3 Jun 2026 22.25 CEST"},{"id":"6a20d3f28f08d10bbf391cf0","elements":[{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

The Nationals leader, Matt Canavan, says “Labor must push back on Trump’s new tariffs”, arguing they’re unfair and a breach of the free trade agreement.","elementId":"4d527acc-4c38-496c-bdd0-3c7ec1511b20"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Canavan has given the most muscular opposition to America’s proposed tariffs, announced yesterday by the US trade representative. In a statement he claimed the trade barriers were “unjustified and a clear breach of the Free Trade Agreement Australia has with the US”.","elementId":"67341674-0c9f-4327-8de1-cfec3ef5fcba"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

“We are great friends with Americans but these latest tariffs are based on a fig leaf of a justification,” Canavan said.","elementId":"45529680-58d3-46d8-b1da-26ff662c9248"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n

Just weeks after the US supreme court struck out the Trump administration’s first tariffs, the US launched an investigation of whether Australia fails to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.\n","elementId":"25d1fde9-2b65-4f4d-a598-1d7a98221f6a"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Canavan noted that Australia has strict laws against the use of forced labour and modern slavery, and that the US investigation “has not provided detailed evidence that Australia fails to stop products made with forced labour”.","elementId":"42c7d6f8-9ab8-4bfa-b1db-38d142adde51"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n

Six childcare centres facing disciplinary action by the government for not meeting minimum standards have shut, while 99 services have been issued notices to improve since the government passed new safety legislation in December.","elementId":"cf9248fb-2a62-43b5-b29c-1801479ffcbb"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Guardian Australia understands the five centres had failed to meet standards within the deadline set by government, but had not yet had their childcare subsidy funding suspended.","elementId":"a2dba3c9-3122-4a27-b684-d65dacc54c3d"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Ninety-nine childcare services have been issued notices since new standards were legislated, with 44 now meeting them. The government says those services had persistently failed to improve prior to intervention.","elementId":"be5acc64-2398-4223-8b0a-fb92e581e9f1"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Ninety-two per cent of services are now meeting or exceeding the standards.","elementId":"3a5ce2ab-4ae2-41d3-a591-260023a11048"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

The education minister, Jason Clare, says the percentage of childcare centres meeting quality benchmarks “is now at the highest level ever”.","elementId":"58791b0b-a619-4fef-8d68-a51eee4c0ee8"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n

I have been very blunt – not enough had been done by governments – state or federal, Labor or Liberal.\n

But a lot has happened in the last 12 months and we’re seeing quality and safety across the sector improving.\n","elementId":"71734f8b-8247-4cb0-9541-eae735e72667"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

You say godlike powers, I say Henry VIII powers, either way, the Greens and the Coalition have a problem with the discretionary powers that would allow the treasurer to make rule changes to CGT and negative gearing after the legislation passes.","elementId":"27dbf8c5-9973-4983-bc2c-6d68de25b07e"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

As we’ve heard many times from the government now, they say it’s all standard practice, but the Greens are sceptical.","elementId":"1f769739-f9e3-47b5-a2ee-8b93abf5e082"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Greens senator David Shoebridge says the legislation needs “a really bloody close look”, as the party considers its position.","elementId":"cabb9dd0-7e87-464b-a71b-6b66bff96c4e"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n

The term politically is Henry VIII powers, the ability to rewrite laws that have been passed by parliament … That didn’t go well for parliament at the time.\n

Jim Chalmers’ budget bill will face debate and a vote in the House today, and he poses the legislation as a “really simple choice” for the Coalition.","elementId":"6f69c6b5-9d19-468a-9f76-e4f573c85b13"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

As we know, the government has set up the bill as a wedge for the opposition, by including both tax changes to CGT and negative gearing and tax cuts for workers.","elementId":"4a37f3fa-4c8c-4050-a258-df8a312b8bce"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Chalmers is doing a mini doorstop at the House of Representatives doors outside parliament.","elementId":"7e444009-87b4-452b-b475-8aa5a2fa768a"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

A little note here: the “doors” are when the media set up a camera and a couple of reporters to talk to pollies as they walk in, generally backbenchers. Chalmers can use the ministerial entrance to get into parliament and avoid the cameras, so he clearly wanted to have a chat this morning and get his face on the morning bulletins.","elementId":"206deef1-4ba2-4a64-b8eb-671c8f901a3c"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n

Really simple choice in the parliament today: Labor lower taxes on workers, a fair go for first home buyers. The Coalition opposing both of those things.\n","elementId":"520c8a37-352c-4847-8383-6a2f8c62f3e7"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

On criticisms over the discretionary powers in the legislation that would allow Chalmers to amend the rules – the treasurer calls the concerns a “beat-up”.","elementId":"eda0204d-2032-4f54-9f8d-42b979723bc9"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n

Anthony Albanese says new tariffs from the US on Australian goods announced yesterday are “unwarranted” and that the government has made its position on tariffs clear.","elementId":"5bbde5cd-3eba-4383-a455-8878b104ec23"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Speaking to the ABC’s AM program, he says no notice was given and that Australia has “robust, comprehensive and world-leading legislation addressing forced labour and modern slavery”.","elementId":"c70f9485-3c25-4fed-a092-303d8881da70"},{"_type":"model.dotcomrendering.pageElements.RichLinkBlockElement","prefix":"Related: ","text":"Trump could slap Australia with 12.5% tariff for allegedly importing goods made by slave labour","elementId":"deee0b37-3bea-41e3-9e6d-cf6cf6863416","role":"thumbnail","url":"https://www.theguardian.com/us-news/2026/jun/03/trump-could-slap-australia-with-125-tariff-for-allegedly-importing-goods-made-by-slave-labour"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Albanese says Australia hasn’t been singled out in this latest round – 54 countries have been included on the US’s list.","elementId":"4c21be32-ff0e-4268-ba4a-4f4d700cbdca"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n

It seems there is an ideological disagreement where the United States administration has broken with what was decades-long understanding that tariffs are not positive for the country that is imposing them, that they increase the costs of goods and services in the country that is applying them to its consumers, and that free trade is in the interest of the global economy.\n

We continue to use every opportunity that we have to advocate that US tariffs imposed in Australia are unwarranted.\n","elementId":"07d67d1d-24b2-45ee-baf6-93621e03fbc1"}],"attributes":{"pinned":false,"keyEvent":true,"summary":false},"blockCreatedOn":1780521187000,"blockCreatedOnDisplay":"23.13 CEST","blockLastUpdated":1780529798000,"blockLastUpdatedDisplay":"01.36 CEST","blockFirstPublished":1780521453000,"blockFirstPublishedDisplay":"23.17 CEST","blockFirstPublishedDisplayNoTimezone":"23.17","title":"'Ideological difference' between Australian and US government on tariffs says Albanese","contributors":[],"primaryDateLine":"Thu 4 Jun 2026 04.02 CEST","secondaryDateLine":"First published on Wed 3 Jun 2026 22.25 CEST"},{"id":"6a202ef68f082fe26065557c","elements":[{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

Australia’s youngest convicted murderer has been handed more time behind bars after a judge found him to have had complete disregard for his release conditions, Australian Associated Press reports.","elementId":"4fff8358-d9c3-4185-aab1-c56a8044c281"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

The man, known for legal reasons as SLD, has spent almost two-thirds of his life in jail after the then 13-year-old abducted and fatally stabbed his three-year-old neighbour Courtney Morley-Clarke on the Central Coast in 2001.","elementId":"ab118bc0-1090-41fa-9e10-4e742dd2d6fe"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"

The now 39-year-old pleaded guilty to five counts of breaching his supervisory orders and two charges relating to child abuse material.","elementId":"71bbcd5a-d1a6-47f6-9591-a5b2873426