Washington: Australian goods will continue to be subject to a US tariff of 10 per cent after President Donald Trump maintained the current “baseline” rate – despite earlier threats to hike the levy to 15 or 20 per cent.

The US president raised foreign recognition of Palestine as a stumbling block to securing trade deals, as he uses a string of issues as weapons in talks.

SYDNEY/WELLINGTON (Reuters) -Australia Trade Minister Don Farrell said on Friday the White House had confirmed that no country had reciprocal tariffs lower than Australia, suggesting U.S. President Donald Trump had left the 10% baseline tariffs on Australian goods unchanged.