The Trump administration has confirmed Australian exports to the US will be hit with a 12.5 per cent tariff from later today, replacing the temporary 10 per cent levy that was due to expire.

Australia is among dozens of countries facing new tariffs, first proposed last month following a US trade investigation into forced labour.

The levy will take effect from 12.01am Friday local time (2.01pm Friday AEST and 12.01pm AWST), although some countries, including the UK, will face a lower 10 per cent rate.

The Trump administration says the move is aimed at tackling forced labour and slavery, arguing American businesses are being placed at a competitive disadvantage because other countries are not doing enough to address the issue.

However, many analysts believe the tariffs are effectively replacing broader trade measures struck down by the US Supreme Court earlier this year, with the forced labour investigation serving as the legal basis for the new policy.

The Australian Government and the Business Council of Australia both lodged formal submissions opposing the tariffs during the consultation period, which ended earlier this month.

Trade Minister Don Farrell called for the immediate withdrawal of the “unjustified” move.

“These tariffs are unjustified, inconsistent with our free trade agreement, and should be removed,” he said.

“Australia’s measures to combat forced labour and modern slavery are among the strongest in the world, and we are recognised globally, including in the US, for our leadership.”

Asked whether the Australian Government was disappointed with the decision, Deputy Prime Minister Richard Marles said it was.

“We don’t want to see increases in tariffs. We want to see freer trade and more trade flows between Australia and the United States,” he told ABC Radio National on Friday.

“Grounding this on the basis of forced labour ... (it is) definitely something which needs to be combated around the world.

“So we support that objective, but we have laws which are amongst the strongest in the world, and we’ve been making that point to the Trump administration.”

Earlier this month, the Federal Government announced it would strengthen Australia’s anti-slavery laws with harsher penalties.

Under the changes, companies with annual revenue of more than $100 million will be subject to a new criminal offence, in addition to a new civil penalty under the Modern Slavery Act, which was last updated in 2018.

An estimated 50 million people around the world are living in modern slavery, according to the Global Slavery Index, including people who are trafficked or subjected to forced labour.