Certainty or more uncertainty? - What United States tariffs mean for Australian exporters

Short on time? Read the key takeaways.

On 31 July 2025, the United States (US) President Donald Trump confirmed that the ‘Liberation Day’ tariffs, which were partially postponed earlier this year, will be officially implemented on 7 August 2025.

For Australian exporters, a 10% baseline tariff has been retained on most goods entering the US. Additionally, higher ‘reciprocal’ tariff rates have been announced for many other US trading partners. 

Reductions for some, increases for others 

Despite the sweeping tariff changes, several countries have successfully negotiated bilateral trade deals with the US, securing reduced tariff rates or exemptions as follows: 

• United Kingdom – 10% 
• European Union – Combined duty capped at 15%, additional duty applies only if the existing rate is below 15% 
• Japan – 15% 
• South Korea – 15% 
• Philippines – 19% 
• Indonesia – 19% 
• Vietnam – 20%. 

These agreements reflect strategic partnerships and broader cooperations in areas such as defence, energy, and strategic resource development. 

Current Australian outcomes

With a 10% baseline tariff on most Australian goods, it is also worth a reminder that there are sectorial tariffs. These include: 

• Copper products - Imports of semi-finished copper products such as pipes and wiring and copper-intensive derivates such as fittings cables and connectors will be subject to a 50% tariff, effective 1 August 2025 
• Steel and aluminium exports - Australian steel and aluminium exports to the US continue to face the steep 50% tariff, including certain derivative goods that contain steel or aluminium components 
• Automotive exports - Automobiles, light trucks and certain automotive parts remain subject to a 25% tariff. 

Future uncertainty for some products 

While some goods continue to benefit from tariff exemptions, including select energy products, coins, and bullion, uncertainty remains for several sectors currently under active review. 

Active reviews are currently underway for timber, semi-conductors, pharmaceuticals, trucks, processed critical minerals, commercial aircraft, polysilicon, and unmanned aircraft systems. These investigations are anticipated to conclude between late 2025 to early 2026. Should the US President determine that these imports pose a national security risk, the outcome could include significant new tariffs or import restrictions, potentially reshaping market access for Australian exporters.

Small packages, big costs: US ends de minimis relief 

Effective 29 August 2025, the de minimis duty exemption, which previously allowed low-value shipments to enter the US duty free, will be suspended for all countries. This means that: 

• Goods shipped outside of the international postal network will now be subject to all applicable duties 
• Goods shipped through the postal system will face one of two tariffs: either an ‘ad valorem duty’ equal to the effective tariff rate applicable to the country of origin of the goods or, during a six-month transitional period, a fixed tariff ranging from $80 to $200 USD depending on the country of origin's tariff rate. After six months, all applicable shipments must comply with the ad valorem duty methodology. 

A big focus on “illegal” transhipment and country of origin 

The US is intensifying efforts to crack down on illegal transhipment, after concerns about tariff evasion, particularly involving Chinese goods rerouted through Southeast Asia. Under newly announced trade agreements with countries such as Vietnam and Indonesia, goods identified as transhipped, relabelled, minimally altered, or diverted in transit to obscure Chinese origin, may attract punitive tariffs of up to 40%. While standard exports from Vietnam will face a 20% reduced tariff, any product identified as transhipped will attract double that rate. 

For Australian exporters, this underscores the importance of robust country of origin requirements and supply chain transparency. 

How BDO can help 

With the US tariffs now in effect and the focus on illegal transhipment, Australian businesses face increased compliance and cost pressures. BDO’s international trade and customs team can assist by: 

• Reviewing your supply chain for transhipment risks 
• Advising on country-of-origin rules under relevant Free Trade Agreements (FTAs) 
• Providing strategic guidance to help businesses adapt and remain competitive in a shifting global trade landscape. 

 Contact us today to learn more about how we can support your business.