On 1 August 2025, the United States (US) adopted new tiered tariffs to adjust trade relations. 

The International Emergency Economic Powers Act (IEEPA), based on goods’ country of origin, is upheld and often exceeds 10 per cent. Multiple tariffs may apply depending on origin, classification, and composition, including Most Favoured Nation (MFN) rates, IEEPA or Section 232 (steel, aluminium, copper, automotive parts), and, for Chinese goods, Section 301 tariffs. Some imports now face tariffs up to 55 per cent.

Australian exports are largely unaffected, remaining at the standard 10 per cent due to strong diplomatic ties; though steel, aluminium, copper, and automotive goods still incur higher tariffs under section 232 tariff schedules. 

Business impacts: strategic considerations

While the direct impact on Australian exporters is currently limited, the broader implications of global tariff restructuring warrant careful consideration. Potential changes in US import patterns, supply chain configurations, and inflation may indirectly affect demand, pricing, and market competitiveness.

Australian companies with customers or operations in the United States should assess how these developments might influence procurement strategies, contractual arrangements, and long-term planning. To remain prepared for changes in the trade environment, businesses should consider the following:

  • Review supply chains to identify potential exposure to US tariffs, particularly with respect to third-country components or transshipment risks.
  • Utilise existing agreements, such as AUSFTA, and evaluate diversification through other free trade agreements to manage costs and access new markets.
  • Strengthen customs compliance by ensuring accurate tariff classifications and correct determination of country of origin, which are important for duty assessment. Working with global trade advisors and staying informed about regulatory changes can help businesses respond effectively.
  • Apply data analytics and scenario planning to assess the financial impact of tariff adjustments and explore alternative sourcing or reshoring options.
  • For related-party transactions, monitor transaction flows, especially when revising sourcing strategies, and update transfer pricing documentation as necessary.

Staying ahead of the curve

Australia’s position following the August 2025 tariff updates offers some stability but does not eliminate risk. As international trade conditions continue to change, it is important for businesses to stay vigilant and informed. The coming months will be significant in understanding how these adjustments will influence supply chains and global markets.

For additional information, consult with our team of Global Trade specialists, who can offer a complimentary review of customs data and transaction flows to identify practical insights and efficiency opportunities.

Article contributed to by Chloe Cullen - Transfer Pricing

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