What has changed

The US has announced new tariffs on imports from Australia and trade partners globally.

The US has imposed a 10 per cent baseline tariff which took effect from 12:01AM on 5 April 2025 EDT (3.01pm Saturday 5 April AEST). Most goods originating in Australia will be subject to this 10 per cent tariff on import into the United States.

In addition, other US trading partners were to be subject to new reciprocal tariff rates, calculated individually and intended to take effect from 9 April. However, on 9 April, President Trump announced a 90-day temporary suspension of these additional tariffs for most countries. An additional reciprocal tariff rate of 125 per cent will be levied on goods originating from the People’s Republic of China, Hong Kong and Macau, from 10 April. This is in addition to other tariffs, including the 20 per cent levied on goods originating from the People’s Republic of China and Hong Kong from 4 March.

The new tariffs will be paid by US importers.

The US has exempted some goods from the new tariffs. Exemptions from the new 10% tariff currently include:

• steel and aluminium articles that are already subject to national security sectoral tariffs of 25 per cent under Section 232 of the Trade Expansion Act
• automobiles that are already subject to national security sectoral tariffs of 25 per cent under Section 232 of the Trade Expansion Act (noting the tariffs on vehicle parts are to take effect by 3 May 2025)
• from 3 May 2025, automotive parts subject to national security sectoral tariffs of 25 per cent under Section 232 of the Trade Expansion Act
• goods listed by the US as exempt from reciprocal tariffs, including timber and lumber articles and some derivative products; copper products and some derivative products; semiconductors, semiconductor manufacturing equipment and certain derivative products (for example, smartphones and laptops); and select pharmaceutical products
• certain critical minerals, energy products, coins and bullion

It is important to note that these exemptions may change as the US moves to implement the tariff announcements of 2 April 2025 and undertakes investigations into certain goods. Imports of timber and lumber, copper, critical minerals, pharmaceuticals and semiconductors are currently under investigation by the US and may become subject to tariffs under Section 232 of the Trade Expansion Act.

On 16 April 2025, the US Secretary of Commerce invited comments to inform its investigations relating to imports of pharmaceuticals, pharmaceutical ingredients and derivative products, and imports of semiconductors, semiconductor manufacturing equipment and derivative products.

• To make a submission on pharmaceuticals by 7 May 2025, refer to Federal Register: Notice of Request for Public Comments on Section 232 National Security Investigation of Imports of Pharmaceuticals and Pharmaceutical Ingredients.
• To make a submission on semiconductors by 7 May 2025, refer to Federal Register: Notice of Request for Public Comments on Section 232 National Security Investigation of Imports of Semiconductors and Semiconductor Manufacturing Equipment.
   

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.  These impacts are likely to vary by sector and will affect individual exporters in different ways.

Australian exporters should be aware of these changed requirements and seek independent advice. The Australian Trade and Investment Commission (Austrade) is able to provide more targeted information and advice to Australian businesses, via its Go Global Toolkit: US tariff changes – support for Australian businesses.

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

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

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).

Help and resources

• Austrade provides assistance and information for businesses through its Go Global Toolkit: US tariff changes – support for Australian businesses
• DFAT country brief: United States of America country brief
• DFAT trade data: Trade and Investment data and publications
• Licensed customs brokers: Brokerages list
• White House proclamations and executive orders on tariffs:
  • Reciprocal tariffs executive order of 9 April 2025: Modifying Reciprocal Tariff Rates to Reflect Trading Partner Retaliation and Alignment 
  • Reciprocal tariffs executive order of 2 April 2025: Executive Order Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits
  • The US reciprocal tariffs fact sheet of 2 April 2025: Fact Sheet: President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security
  • Clarification of the 2 April executive order, issued on 11 April 2025: Clarification of Exceptions Under Executive Order 14257 of April 2, 2025, as Amended – The White House
  • The US Presidential Proclamation on automobiles and automobile parts: Adjusting Imports of Automobiles and Automobile Parts into the United States
  • The US Presidential Proclamation on aluminium: Adjusting Imports of Aluminium into the United States
  • The US Presidential Proclamation on steel: Adjusting Imports of Steel into the United States
• US Customs guidance and US Federal Register notices:
  • US Customs guidance on the 10% tariffs on goods imported into the US that took effect on April 5 2025: CSMS # 64649265 - GUIDANCE – Reciprocal Tariffs, April 5, 2025 Effective Date. This includes guidance on goods in transit when the tariffs took effect.
  • Federal register notice on steel tariffs, which took effect on 12 March 2025: Federal Register : Implementation of Duties on Steel Pursuant to Proclamation 10896 Adjusting Imports of Steel Into the United States
  • Federal Register notice on aluminium tariffs, which took effect on 12 March 2025: Federal Register :: Implementation of Duties on Aluminum Pursuant to Proclamation 10895 Adjusting Imports of Aluminum Into the United States
  • US Customs and Border Protection guidance on passenger vehicles and light trucks tariffs, which took effect on April 3 2025: CSMS # 64624801 - GUIDANCE: Import Duties on Certain Automobiles
• Contact US Customs and Border Protection with specific questions.