Reciprocal Tariff information for Australia

The US has imposed a 10 per cent baseline tariff on most imported goods, effective 9 April 2025. Most goods originating in Australia are subject to this tariff on import into the US. Some goods are subject to a higher tariff rate, while others are exempt.

Goods subject to higher tariffs:

·        Australian steel and aluminium imports to the US are subject to a 50 per cent tariff from 4 June 2025. This is an increase from a 25 per cent tariff imposed on 12 March 2025. The tariff includes certain derivative products that have steel and aluminium content. These tariffs have been imposed under Section 232 of the Trade Expansion Act 1962 due to their impact on US national security.

·        Automobiles, light trucks and certain automotive parts are subject to a 25 per cent tariff.  These tariffs are also imposed under Section 232 of the Trade Expansion Act 1962.

·        Some copper and copper-containing products are subject to a 50 per tariff from 1 August 2025. This tariff has been imposed under Section 232 of the Trade Expansion Act 1962.

Exemptions:

The US has exempted some goods from new tariffs. Products exempted from the 10 per cent baseline tariff currently include:

·        certain energy products, coins and bullion

·        some products listed as exempt while the US conducts sector-specific investigations.

Investigations:

The US has launched investigations under the Trade Expansion Act 1962 to assess the effect of the import of the following goods on US national security:

·        timber and lumber and their derivative products

·        semiconductors, semiconductor manufacturing equipment and certain derivative products (for example, smartphones and laptops)

·        pharmaceuticals and pharmaceutical ingredients, and derivative products

·        certain critical minerals and derivative products

·        medium and heavy-duty trucks and related truck parts

·        aircraft, jet engines and parts

·        polysilicon and derivatives

·        unmanned aircraft systems and their parts and components.

Information on these investigations, including how to make a submission and submission periods for each investigation, is available on the US Federal Register. Submissions on pharmaceuticals, timber and lumber, semiconductors, aircraft, critical minerals and trucks have closed.

Implications for Australian exporters to the US

The Australian government is working to analyse the impacts of these announced US trade measures on Australian trade, in particular for Australian exporters to the US. The impacts are likely to vary by sector and will affect individual exporters in different ways.

Australian exporters should be aware that higher tariffs imposed on some countries may impact tariff rates for Australian businesses whose goods are manufactured elsewhere.

Exporters should stay up to date with new announcements.

The Australian Trade and Investment Commission (Austrade) provides more targeted information and advice to Australian businesses, via its Go Global Toolkit: US tariff changes – support for Australian businesses. This includes recordings of webinars held to explain the tariff changes.

Australian exporters are encouraged to seek independent advice. Exporters may need to engage with a licensed customs broker (see Brokerages list) or contact US Customs and Border Protection with specific questions.

Australia's economy is resilient and supported by a global framework of free-trade agreements with major Australian trading partners.

Australia has a Free Trade Agreement with the United States and continues to advocate for maintaining open trade. The US pays no tariffs for exports to Australia under the Australia-United States Free Trade Agreement (AUSFTA).

Exporters are also encouraged to regularly check the US Federal Register and US Customs Systems Management Service for new notices regarding the application of US tariffs on imported goods.

Canada:

Effective immediately, all shipments from Canada will be subject to a 35% tariff (increased from 25%). Goods qualifying under the USMCA are exempt from this tariff.

These tariffs will go into effect at 12:01 a.m. on Thursday, August 7th.

·        Shipments departing before August 7th on the final mode of transit and arriving before October 5th will remain subject to the current tariff rates.

·        Shipments departing on or after August 7th will be subject to the new reciprocal tariff rates.

Worldwide Adjusted Reciprocal Tariff – Effective July 31st 2025.

On 31 July 2025, the US modified the tariff rates for certain trading partners, effective from 7 August 2025. 

The US will suspend the de minimis exemption for all low-value imports to the US from 29 August 2025. As a result, all goods valued at $US800 or less will be subject to country-specific tariff rates.

As noted in our previous update:

·        Tariffs on Mexico have been postponed for an additional 90 days.

·        An update regarding China’s 30% tariff is expected on or before August 12th.

Currently there are only 8 confirmed deals, of which Japan, the EU & the Philippines are included.

Australian Exporters are also encouraged to regularly check the US Federal Register and US Customs Systems Management Service for new notices regarding the application of US tariffs on imported goods.

Updated information can be found here: https://www.dfat.gov.au/trade/trade-and-investment/latest-us-tariffs

Please reach out to DDWL should you have any questions.

Best Regards,

The DDWL Team