Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) wish to advise members of significant developments concerning U.S. trade policy that may affect Australian exporters.
U.S. Tariff Increases and Potential Trade Impacts
U.S. President Donald Trump has announced a sweeping set of tariff increases, introducing a 10% baseline tariff on all imported goods into the United States. Additional higher duties have been imposed on a range of countries, including key U.S. trading partners. These measures mark a departure from long-standing trade liberalisation policies and are expected to provoke retaliatory actions, leading to potential cost increases for various goods.
Australia's Inclusion in U.S. Trade Reports
Australia has been identified in the 2025 National Trade Estimate Report for its stringent biosecurity measures on commodities such as beef, pork, poultry, and horticulture products. The U.S. considers these protections as non-tariff barriers and has referenced them as part of its justification for reciprocal tariffs on Australian exports.
Key Announcements
- Tariffs ranging from 10% to 49% have been introduced on all imported goods.
- Specific tariff rates include:
- 34% on goods from China
- 20% on goods from the European Union
- 10% on goods from the United Kingdom
- No tariffs have been imposed on imports from Canada or Mexico.
- A 25% tariff has been introduced on all foreign-manufactured automobiles.
Australian Government Response
Prime Minister Anthony Albanese has acknowledged the challenges posed by these new tariffs, reaffirming that Australia will maintain its existing biosecurity protections. While ruling out retaliatory tariffs, the government has committed to supporting affected industries through:
- $50 million in emergency assistance for impacted sectors.
- Strengthened anti-dumping measures to protect Australian steel and other products.
- A $1 billion economic resilience program, offering zero-interest loans to support the development of new export markets.
- A renewed focus on Australian-made products, with government procurement policies prioritising local businesses.
The Prime Minister emphasised that Australia has secured relatively favourable treatment compared to other nations in the new tariff regime. Ongoing diplomatic engagement continues at multiple levels to advocate for Australian trade interests.
Next Steps
FTA/APSA will continue monitoring developments and provide further updates as information emerges. Members are encouraged to assess potential impacts on their operations and explore available government support programs.