Higher US tariffs could put a billion-dollar impost on Australian exports as the nation's trade minister insists the planned hike isn't linked to modern slavery concerns.
The Trump administration announced plans in June for a new 12.5 per cent tariff on dozens of countries it says are failing to crack down on goods made with forced labour.
Modelling from EY showed the changes could impose $1.6 billion a year in costs on Australian exports and cause the nation to lose relative tariff advantages over competitors.
The proposed tariff was made public by US trade representative Jamieson Greer as part of an investigation into what Washington says were unfair trade practices by 60 countries.
Trade Minister Don Farrell suggested the reason given by the US for the plan was not accepted by Australia.