U.S. tariffs increase pressure on Australian exporters amid global trade shifts
U.S. tariffs increase pressure on Australian exporters amid global trade shifts
Australian exporters are bracing for a wave of increased costs and compliance risks, following U.S. President Donald Trump’s confirmation that postponed “Liberation Day” tariffs will officially take effect from 7 August 2025.
While a 10 per cent baseline tariff on most Australian goods entering the U.S. has been retained, certain sector-specific exports continue to be hit much harder.
Semi-finished copper products such as pipes and wiring will be subject to a new 50 per cent tariff, in line with steel and aluminium exports.
Automotive exports, including light trucks and parts, remain under a 25 per cent tariff.
BDO’s International Trade Leader, Leonie Ferretter, said the latest U.S. trade policy developments highlight the increasingly complex and strategic nature of global trade.
“Australian businesses need to be alert, not just to tariff levels, but also to supply chain vulnerabilities and U.S. national security considerations,” she said.
Leonie said that while several nations including Vietnam, Indonesia and the European Union have secured reduced or capped tariffs through bilateral deals, Australia’s 10 per cent tariff has remained which may place local exporters at a comparative disadvantage when compared to lower cost jurisdictions.
Adding to the complexity is the suspension of the de minimis duty exemption effective 29 August 2025, which will apply duties to previously exempt low-value shipments.
“This move will significantly increase costs for small shipments and e-commerce exporters, particularly those outside the postal network,” she said.
The U.S. government is also ramping up enforcement on illegal transhipment, with penalties of up to 40 per cent on goods deemed to be re-routed from countries such as China via Southeast Asia to avoid tariffs.
“Australian exporters must ensure robust country-of-origin documentation and supply chain transparency to avoid being caught up in transhipment crackdowns.”
With major investigations into additional product categories—including timber, pharmaceuticals, and critical minerals—underway, uncertainty remains high for exporters to the U.S. Leonie urged Australian businesses to review their international trade exposure and seek expert advice to ensure compliance and competitiveness in the face of escalating global trade tensions.
For media enquiries:
Tate Papworth
Manager, Media
E: Tate.Papworth@bdo.com.au
Ph: 0433411189