US tariffs on Australian goods: A new challenge for exporters

Australian businesses are bracing for impact as the United States rolls out its long-promised tariffs.

US President Donald Trump’s decision to impose 10 per cent tariffs on all Australian manufactured goods raises significant concerns for the Australian economy, which is already impacted by the 25% US tariffs on steel and aluminium products

According to BDO Australia Customs & International Trade expert, Leonie Ferretter, the move could have lasting consequences on both the bottom line of Australian businesses and the price of imported goods.

"Australian exporters now face a unique set of challenges as tariffs make it more expensive for the U.S. to purchase goods from Australia”, said Leonie.

"This could particularly impact sectors like manufacturing and agriculture, which are exposed to U.S. markets. The price increases could also ripple through to Australian consumers, especially for goods imported from the US as there is no ability to claim a refund of the reciprocal tariffs incurred on inputs to manufacture US originating goods."

While some Australian businesses may look for alternative markets, such as Southeast Asia or Europe, the reality is that these new tariffs will increase costs for a range of sectors, leading to potential delays, potentially higher shipping costs as supply chains shift, and squeezed profit margins.

“The impact on Australian companies is real and immediate and whilst Australia may seem to have gotten off lightly compared to many other countries, the fact is a large number Australian businesses use manufacturing facilities across the Asia Pacific region – with some of those countries now incurring tariffs in excess of 40 per cent. Companies will need to reassess their pricing strategies and supply chains to stay competitive,”

The broader question remains whether Australian consumers will feel the pinch.

“With supply chains already under pressure, the price of everyday goods, including electronics and agricultural products, could rise. While the Australian government may intervene to shield certain sectors, businesses will likely face challenges in managing these cost increases.”

For Australian businesses navigating this new tariff landscape, Leonie recommends a proactive approach.

"Now is the time for Australian companies to seek expert advice on mitigating the financial impact of these tariffs. With careful planning, businesses can find ways to adapt and continue to thrive despite the changing global trade environment."

For media enquiries:
Tate Papworth 
Manager, Media 
E: Tate.Papworth@bdo.com.au 
Ph: 0433 411 189