US Trade Tariffs
On Tuesday 03 April 2025, the US President Donald Trump announced a 10% tariff on Australian goods. The tariff is a ‘baseline minimum’ with many other countries having higher tariffs imposed on them. In response, the Australian Prime Minister announced a series of measures his government will take to promote Australian trade and protect Australian jobs.
Prime Minister Albanese’s 5 key actions are:
- Strengthening the Australian anti-dumping regime to safeguard key sectors like steel, aluminium and manufacturing against unfair competition.
- Providing $50 million to affected sectors, particularly through peak bodies to secure and grow new markets for their world class products. This work will be backed by five new business and investment missions to priority markets within the first 100 days of a re-elected Albanese Government.
- Establishing a new Economic Resilience Program through the National Reconstruction Fund. This will provide $1 billion in zero interest loans for firms to capitalise on new export opportunities.
- The Labor Government will buy Australian by ensuring Australian businesses will be front of the queue for government procurement and contracts. This will be to maximise value for local businesses and the taxpayer.
- The Labor Government will establish a Critical Minerals Strategic Reserve with further details yet to be announced.
Prime Minister Albanese has also committed to not placing reciprocal tariffs on the United Sates. He indicated he would continue to make the strongest case for the tariffs to be removed. He noted that the existing Free trade Agreement with the US contains dispute resolution mechanisms, although his preference is to deal directly with the Trump Administration at this stage.
Background
The Office of the United States Trade Representative (USTR) recently submitted the 2025 National Trade Estimate (NTE) to President Trump and Congress. This report informs the US President’s 2025 Trade Policy Agenda. The NTE is an annual report detailing foreign trade barriers claimed by U.S. exporters and USTR’s efforts to reduce those barriers. The report can be accessed here.
A 10% tariff has been placed on Australian imports. The Presidents list separately included a 10% tariff on the Australian Territories of Christmas Island, Cocos (Keeling) Island and the Heard and McDonald Islands. A separate 29% tariff was placed on Australian territory, Norfolk Island.
The UK and New Zealand will have the same 10% tariff as Australia.
However, many of Australia’s largest trading partners will have higher tariffs. These include China at 34%, Japan at 24%, South Korea at 25%, India at 20% and the European Union received 20%. A list of all reciprocal tariff rates can be accessed here.
Notably in his press conference, President Trump singled out access for American fresh beef imports to Australia as a point of dispute. They are currently restricted due to Australia’s biosecurity arrangements. The President indicated he would not ban Australia beef exports to the US, but they would be subject to the 10% tariff.
Prime Minister Albanese confirmed Australia will not weaken biosecurity laws.
Further information
For more information, please contact your Hawker Britton Managing Director, Simon Banks, at [email protected].
Further Hawker Britton Occasional Papers are available here.