Andrew McKellar interview on Sky News regarding US tariffs
Transcript: 25 July, 2026
Kristie Lloyd:
To discuss this further is Chief Executive Officer at the Australian Chamber of Commerce and Industry, Andrew McKellar. Andrew, thanks for your time this morning. As mentioned, the Trump administration claims that countries like Australia aren't doing enough to combat forced labour in terms of those tariffs. What proof or data would they be going off for this?
Andrew McKellar:
Hi, Kristie, good to be with you. Look, it's very strange. We have to say, we think the justification that the Trump administration has provided for putting these tariffs in, it's really a pretext because Australia has one of the strongest, most robust regimes against modern slavery anywhere in the world. If you look at any of the indexes, we're very high up in the rankings in terms of the level of protection that we provide for companies with turnover above a hundred million. They're required to go through very strict due diligence with their supply chains to make sure that they aren't buying from suppliers who have arrangements that don't meet those standards. So there's no evidence. It really is a fiction in terms of the justification that's been provided by the US administration.
Kristie Lloyd:
How likely do you think it would be that Australia could be able to negotiate a change to these tariffs?
Andrew McKellar:
Well, obviously from a business point of view, we will continue to work with the government. The government has been very strong in its representations, its engagement with the US administration, with the USTR, with members of the Trump administration and cabinet throughout this process. Over more than 12 months now, the embassy in Washington, they've been working hard. They've been coordinating with business. And I think up until this point, clearly Australia has been getting one of the most favourable outcomes in what is a very difficult situation. But there's no justification for the decision that was made yesterday. The criteria, the basis on which it's been put forward really are ludicrous. They're just not supported by the facts.
Kristie Lloyd:
And this week we heard that Anthony Albanese has announced the creation of a new fair work court that critics a warning of union infiltration with this. What do you make of this plan?
Andrew McKellar:
Well, I think the biggest issue with it is really the additional risk of litigation, of complexity. We've seen that there's been significant change in terms of workplace relations at the legislation over the past two or three years. That's made it harder for business in terms of the level of compliance and regulation. We're seeing the number of claims, many of them without a lot of basis coming forward now through the Fair Work Commission, and some of those are increasingly spilling into the Federal Court. Our concern is both creating this special, dedicated, new jurisdiction is just going to lead to more and more claims coming forward. It's more cost for business. It makes it harder to employ people in the future. That's not going to be a good outcome.
Kristie Lloyd:
Yeah, a lot of businesses are already struggling at the moment with the cost of living, bills to pay. Is this only going to be a deterrent for many new businesses especially as well?
Andrew McKellar:
Well, for many businesses now, I mean they are absolutely being strangled by red tape. That burden is going up across a range of different fronts. And in terms of the workforce to employ people, it's becoming harder and more expensive. So I think it will discourage future businesses. It will discourage businesses to set up. The risk is that if you make it harder for business to invest and to employ people, then they'll go elsewhere. So I think it's not a good thing for the Australian economy.
Kristie Lloyd:
Just looking finally at Australia's unemployment rate, it has held steady despite the cost-of-living pressures hitting many local businesses at the moment. What's your projection for unemployment in Australia going forward?
Andrew McKellar:
Look, we're not making a forecast. I think the labour market, I have to say, has been remarkably robust over several years now, even in the face of rising interest rates and uncertainty on a global scale. We continue to see some employment growth. We continue to see the unemployment rate, I think, lower than many people had expected. So look, we take that as a bonus. We take that as a plus, and we hope that we can maintain those strong levels of employment, lower levels of unemployment going forward. The risk is that if business conditions don't remain where they have been, and there's, I guess, concerns in terms of business confidence that we've seen in recent months, partly prompted by higher interest rates, partly prompted by higher fuel prices and supply chain issues relating to conflict in the Middle East and global uncertainty. Those are the real risks.
But look, we'll take the good news as long as it comes.
Kristie Lloyd:
Andrew McKellar, thanks so much for your time this morning. We appreciate it.