A Golden Opportunity for Australian Exporters

While the question of tariffs seems to be up in the air after the recent Supreme Court ruling, there are still some facts even if they end up being ruled legal.

Australia's exporters are in a stronger position than most. Here’s why:

• Australian goods entering the U.S. now face a 10% baseline (reciprocal) tariff, effective April 5, 2025, overriding some AUSFTA preferences

• Strategic products like steel, aluminium, and automotive components carry higher tariffs under national security rules - 50% on steel and aluminium (since June 4, 2025), and 25% on automobiles and parts (from early April/May 2025)

  
  

At the same time, many other countries are stuck under much heavier tariffs:

U.S. Reciprocal Tariffs by Country (as of August 2025)

• Australia: 10% baseline

• New Zealand: 15%

• United Kingdom: 10%

• European Union: ~15% combined

• Japan: 15%

• South Korea: 15%

• Philippines: 19%

• Indonesia: 19%

• Vietnam: 20%

In this competitive environment, Australia's relatively lower baseline tariff (10%) gives our goods a strategic edge.

Turning Disruption into Opportunity

Why This Matters Now

• Australia Post has halted its parcel services to the US temporarily.

• This very disruption creates a window for agile exporters who can pivot to alternative logistics (like UPS, DHL or smaller freight companies).

  
  

Support That Makes a Difference

Both Austrade and the G’Day Gateway are staying active:

• Austrade can help exporters navigate tariff reclassification, compliance, logistics, and market intelligence.

• G’Day Gateway opens doors by setting up an office in the US for your company without the overhead of setting up an entire office. We do the work, while you focus on the important things.

These resources mean exporters don't have to figure out the complex environment alone.

But Don’t “Game the System"

While tempting, pushing the boundaries, such as hiding true country of origin, misclassifying goods, or exploiting loopholes is not worth the risk. US customs enforcement is tightening, with strong focus on preventing improper declarations. Violations can lead to:

• Seizure of goods

• Hefty fines

• Suspension of business in the U.S. market

  
  

Instead, focus on transparency, compliance, and leveraging competitive strengths.

A Positive Call to Action

• Embrace the advantage: Look at it in a positive light - Aussie companies have an advantage here.

• Invest in innovation: High-value, differentiated products stand out. What makes your product different to other ones on the market?

• Other shipping options: While Australia Post has suspended package delivery to the US (as of the writing of this article, September 4 2025), there are plenty of other (and usually faster) options out there. Check out our favourite, DHL, and Pack and Send.

• Use support smartly: Austrade and G’Day Gateway are your allies in navigating, innovating, and selling.

• Stay above board: Full compliance ensures long-term viability and reputation in the U.S. market.