Australian goods entering the US will remain subject to the existing 10% tariff, as Australia avoids any increase in tariff rates amid the latest round of Donald Trump’s global trade conflicts.
On Thursday night US time, which corresponds to Friday morning in Australia, Trump issued an executive order introducing new tariff agreements for various trading partners, along with modified tariffs for several other countries. Australia was not mentioned in the order, and accordingly, will continue to face the 10% tariff rate. The US government confirmed this to the Australian embassy in Washington DC.
Trade Minister, Don Farrell, acknowledged that while Australia remains in a favorable position concerning the new tariff regime, the government will continue to advocate for the removal of all tariffs in keeping with the free trade agreement.
Trump’s “reciprocal tariffs” remain separate from the industry-specific tariffs of up to 50% imposed by the Trump administration on Australian steel, aluminum, and copper imports, which continue to apply.
Australian products, including wine, beef, lamb, and wheat, are now more competitive in the American market due to a relative tariff advantage.
Despite this, Australia still aims to eliminate all tariffs on its products exported to the US. Minister Farrell stated that they believe in free and fair trade, and will keep pushing this argument to the US.
Negotiations on the multibillion-dollar AUKUS submarine deal, an aspect of Australia’s defense ties with the US, were separately discussed by Farrell, noting that these do not impact the trade relationship.
Trump’s latest executive order suggests openness to negotiations with countries seen to align with his ‘America First’ ideology. The order also targets countries deemed insufficiently cooperative with the US on trade and national-security matters.
Small economies, particularly those with limited engagement with the US, face higher tariffs under the new order. However, major trading partners like China, with ongoing trade disputes with the US, remain at a 30% tariff rate.
Source: https://www.theguardian.com/australia-news/2025/aug/01/australia-imports-us-trump-tariffs
