Got a tracking number? Let’s see where your freight is
For Australian businesses, tariff exposure is now a moving target - confidence in demand planning, landed cost forecasting, and network flexibility will be key. Here's the latest.
10% Baseline Tariff on Most Imports
Effective April 5, the U.S. imposed a 10% tariff on imports from most countries, including allies like Australia. This move is part of President Trump's "reciprocal tariffs" policy, which aims to address trade imbalances and encourage domestic manufacturing. Source: DFAT.
145% Tariffs on Chinese Imports
Tariffs on Chinese goods have escalated to an effective rate of 145%. This increase targets sectors such as electronics, pharmaceuticals, and automotive parts, intensifying the ongoing trade tensions between the U.S. and China.
Section 232 Investigation into Semiconductor Imports
The U.S. Commerce Department has initiated a Section 232 investigation into semiconductor imports, citing national security concerns. This could lead to new tariffs, potentially starting at 25%, on semiconductors from countries like Taiwan, South Korea, Malaysia, Japan, and China. Source: Politico
Temporary Exemptions on Electronics
While some electronics, including smartphones and laptops, were temporarily exempted from new tariffs, these exemptions are not permanent. The administration has indicated that additional duties may be imposed soon, affecting a broad range of consumer electronics.
Global Market Impact
The sudden implementation of these tariffs has led to volatility in global financial markets, with concerns about potential recessions in countries heavily reliant on exports to the US. Source: ABC
China Raises Tariffs to 125%
On Friday, China escalated the trade war by increasing tariffs on U.S. goods from 84% to 125%. This is a direct response to the U.S. imposing tariffs of up to 145% on Chinese imports. These duties took effect Saturday, signaling that tensions between the world’s two largest economies are far from cooling.
Impact on Global Markets
The intensified trade conflict has rattled investor confidence. U.S. stock markets have shown volatility, and uncertainty is expected to linger as the business community weighs the long-term impact of prolonged tariff escalations.
Temporary “Liberation Day” Tariff Pause
President Trump enacted a 90-day pause on his planned "Liberation Day" tariffs. This gesture was echoed by the EU, which agreed to a similar pause on retaliatory duties. While this creates a short-term diplomatic window, the broader conflict remains unresolved.
10% Tariff on Australian Exports
Despite the 2005 U.S.-Australia Free Trade Agreement, Australian exports to the U.S. are now subject to a 10% tariff. This has raised concerns among Australian exporters about the competitiveness of their products in the US market. Source: DFAT
Challenges in Negotiations
Australia's caretaker government faces difficulties in negotiating exemptions or adjustments to these tariffs, especially given the unpredictable nature of the current U.S. administration's trade policies. Source: The Guardian
Economic Uncertainty
The imposition of tariffs has led to a decline in consumer confidence within Australia, with fears that prolonged trade tensions could negatively impact the country's economic growth. Source: Reuters
Strategic Responses
Australian officials and business leaders are exploring diplomatic channels and leveraging personal relationships to address tariff issues. Notably, Australian golfer Greg Norman has offered to use his personal rapport with President Trump to facilitate discussions aimed at resolving trade disputes. Source: The Guardian
Increased Global Trade Uncertainty
As China and the U.S. continue their tariff tit-for-tat, global supply chains face increased pressure. Australia, which trades heavily with both nations, could see ripple effects—especially in sectors like agriculture, resources, and high-tech components.
Potential Opportunities in Re-Routing Trade
As the U.S. and China look to other markets to source goods, Australia may benefit from diverted demand. For instance, China could increase imports from Australia in areas where U.S. goods become too expensive.
Downside Risk for Exporters
However, the broader market volatility and economic slowdown triggered by the U.S.-China conflict could dampen global demand overall. This poses risks for Australian exporters, particularly those exposed to raw material and intermediate goods markets.
Need for Strategic Positioning
With rising protectionism in the U.S., Australian companies may need to rethink supply chains and diversify trading partners. Trade agreements with Asia-Pacific nations and the EU could offer more stable alternatives in the current climate.
When goods enter the United States, Customs and Border Protection (CBP) determines the amount of import duty (tariff) that must be paid. Tariffs are calculated based on three main factors:
This high rate typically happens when multiple types of duties are combined on certain Chinese imports:
These cumulative duties can push total landed tariffs up to 145% or more in some cases — especially on high-scrutiny goods like steel, aluminum, or electronics.
If you're importing, for example, furniture or clothing made in China, you're likely facing standard + Section 301 tariffs only. But if you’re importing solar panels, electronics, metal products, or industrial materials, you might trigger ADD/CVD investigations, which can bring huge extra charges.
Whether you need to model costs, rethink routing, or adapt your sourcing strategy, our team is here to help. Get in Touch today.
Today, U.S. President Donald Trump announced sweeping new tariffs on global imports, marking a significant shift in trade policy and injecting fresh uncertainty into supply chains worldwide. For APAC businesses, the challenge now is not just understanding what’s changed but navigating what comes next
On April 2, 2025, U.S. President Donald Trump signed an executive order terminating the "de minimis" trade exemption for low-value shipments from China and Hong Kong. This exemption previously allowed packages valued at $800 or less to enter the United States duty-free and with minimal customs oversight. The new policy will take effect on May 2, 2025, at 12:01 a.m. ET.
The de minimis provision permitted low-value shipments to bypass import duties and extensive customs inspections, facilitating a surge in e-commerce imports. In the fiscal year 2024, circa 1.36 billion shipments utilised this exemption, more than doubling the total from four years prior.
The revocation of the de minimis exemption is expected to increase customs workload and raise costs for smaller shipments. It will also significantly impact Chinese e-commerce platforms such as Shein and Temu, which have relied heavily on this provision. Critics of the exemption argued that it disadvantaged U.S. businesses by allowing foreign competitors to avoid tariffs and undercut prices.
Despite longstanding ties, Australia has not been exempted from these new tariffs. The 10% tariff will apply to around $23.9 billion in Australian exports to the US including key categories like commodities, pharmaceuticals, and meat.
Prime Minister Anthony Albanese called the move “totally unwarranted” and “not the act of a friend,” but confirmed Australia will not implement retaliatory tariffs. Instead, the government is pursuing dispute resolution under the AUSFTA.
While the US accounts for less than 5% of Australia’s total exports, the shift signals a broader move toward protectionism - one that APAC supply chains can’t ignore.
In the short term, the new tariffs are expected to create disruption at the border and slow down supply chains. Taking proactive steps now can help minimise delays and cost blowouts.
If you’ve already diversified away from China, you may still be exposed. Many businesses moved operations to Vietnam, Thailand, and Bangladesh post-COVID - countries now facing some of the highest U.S. tariff rates.
This reinforces a key point: diversification must go beyond geography. What’s needed is a more strategic, adaptable model.
The current trade environment requires a more nuanced approach. Leading supply chains are:
Diversification can’t be static in the current environment. It needs to be dynamic, data-driven, and continuously reviewed.
Whether you need to model costs, rethink routing, or pressure-test your sourcing strategy, our team is here to help you take control. Get in Touch today.
Today, U.S. President Donald Trump announced sweeping new tariffs on global imports, marking a significant shift in trade policy and injecting fresh uncertainty into supply chains worldwide. For APAC businesses, the challenge now is not just understanding what’s changed but navigating what comes next.
Despite these changes, trade among these economies is expected to continue, with businesses adjusting their supply chains accordingly.
Although Australia is not directly affected in these tariff measures, there are several key considerations for APAC shippers:
For APAC shippers, staying informed and adaptable will be essential in the coming months. To help mitigate risk, we suggest:
While trade remains strong, shifting policies highlight the need for flexibility and proactive supply chain management. Want to know how these changes could impact your supply chain? Speak to your Explorate operator today to get expert insights and tailored solutions.
No spam. Just the latest market news, tips, and interesting articles in your inbox.
