The China and Australia flags.

Australia could be hit with a new 12.5 percent US tariff after the Trump administration accused dozens of countries of failing to crack down on goods made with forced labour.

The proposed tariff was announced by the US Trade Representative (USTR) on Wednesday, as part of an investigation into what Washington says are unfair trade practices by 60 countries.

Australia is among 45 countries facing the higher 12.5 percent rate, alongside New Zealand, China, Japan, India, South Korea, Brazil and Switzerland.

Another group, including Canada, Britain, the European Union and Mexico, would face a lower 10 percent duty.