Trade Minister Don Farrell has rejected accusations Canberra isn’t doing enough to combat modern slavery after the White House threatened a 12.5 per cent levy.

An investigation by the US Trade Representative has alleged Australia failed to prevent the import of goods produced using forced labour.

Trade minister says Australia has ‘robust, comprehensive and world-leading legislation addressing forced labour and modern slavery’

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

Australia had "robust, comprehensive and world-leading legislation" addressing forced labour and modern slavery, a spokesperson says.

Australia is facing a new 12.5 per cent US tariff imposed over forced labour concerns.

Trade Minister Don Farrell has rejected accusations Canberra isn’t doing enough to combat modern slavery after the White House threatened a 12.5 per cent levy.

The planned new tariff is to be slapped on dozens of countries that have allegedly failed to take action to prevent slavery and forced labour.

The US president's threat may be opportunistic but the concerns aren't entirely baseless, experts say.