As of the 24th of July, the United States (US) announced a 12.5% tariff on Australian exports following its Section 301 investigation into forced labour. This tariff replaces the previous temporary 10% import surcharge.
Trade Minister Don Farrell assures in a government statement that the tariffs are “unjustified” and that the Australian government “will continue to lobby the United States Trade Representative to remove all tariffs on Australian goods”.
Business Council Chief Executive Bran Black speaks about Australia’s trade relationship with the US, stating that the US is “our largest two-way investment partner, with total investment exceeding $2 trillion”.
However, currently, the tariffs remain. Excluded from the tariffs are Australia’s three largest exports to the US: beef, gold and copper. That is over 70% of exported goods that are exempt from the new tariffs.
What Do These New Tariffs Mean for Australian Importers?
Companies importing US goods to Australia will incur extra costs associated with these changes, as the Australian government has not imposed any retaliatory tariffs on the US.
Working with a knowledgeable import broker can help businesses stay informed of changing trade regulations, ensure customs compliance, and minimise delays as international trade policies continue to evolve.
What Do These New Tariffs Mean for Australian Exporters?
Australian goods exported to the US, except for certain products (such as beef, gold or copper), entering the US are now subject to the new 12.5% tariff. This means that US businesses may try to secure a discount from the Australian exporter or be forced to pass on the price increase to US consumers. However, if neither of these options proves viable, US companies may cease trade with Australian companies and seek cheaper alternatives.
Partnering with an experienced shipping broker such as Bullocks can help exporters identify and navigate international trade requirements with confidence.
Updated Trump Tariff Rates for US Imported Goods
10 per cent: Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, the European Union, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Taiwan, Trinidad and Tobago, and the UK.
12.5 per cent: Algeria, Angola, Australia, the Bahamas, Bahrain, Brazil, Chile, China, Iraq, Israel, Japan, Kazakhstan, Kuwait, Libya, Morocco, New Zealand, Nicaragua, Nigeria, Norway, Oman, Peru, the Philippines, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Switzerland, Thailand, Türkiye, UAE, Uruguay, Venezuela, and Vietnam.
Your Trusted Australian Partner in International Imports and Exports
These new tariffs introduced by the United States government can seem daunting to navigate, but they don’t have to be. Bullocks Freightmasters International offers a single point of contact for your international logistics chain.
As experienced shipping brokers and import brokers, we do more than move goods; we offer our customs brokerage and freight forwarding expertise to ensure your business remains competitive and your supply chain stays resilient in an ever-changing global market.
Contact us today for a quote on our cargo service for your next import or export.
