Last Updated on March 6, 2025 by
Trump’s new US trade tariffs are shaking up global trade; here’s what it means for your business.
If your business imports, exports, or operates in the US, you need to pay attention — like, now. The latest round of tariffs is set to disrupt supply chains, drive up costs, and shake up market dynamics. Even if you’re based in Australia, these changes could hit your business where it hurts (i.e., your margins).
The good news? You can plan ahead.
The bad news? If you don’t, you could be looking at unnecessary costs and operational headaches.
In this blog, we’ll walk you through:
- The latest changes in US trade tariffs and what’s coming next
- How these tariffs could impact Australian businesses
- The key moves you need to make to limit the damage
- How you can use our Tariff Scenario Planner to run the numbers and stay ahead
Let’s break it down.
The Big Shift: What's Changing with US Trade Tariffs?
The latest round of US tariffs isn’t just a policy shift. Businesses across various industries are facing a whole new competitive landscape. These tariffs could significantly impact your bottom line, whether you’re importing, exporting, or operating in the US market.
China: 10% Tariffs on Everything
The US has slapped a 10% tariff on all Chinese imports — no exceptions. This is on top of existing tariffs that have been in place since Trump’s first term.
Who’s impacted?
- eCommerce businesses sourcing from China (higher product costs)
- Manufacturers relying on Chinese components
- Tech companies using Chinese-made parts and hardware
Canada & Mexico: 25% Tariffs (With an Exception)
Canada and Mexico are also in the firing line, with a 25% tariff on all goods exported to the US. The only exception? Canadian energy exports, which will face a 10% tariff.
What this means for Australian businesses:
- If you sell into the US and rely on North American distributors, your supply chain could slow down
- If you compete with North American businesses, these tariffs could shift market dynamics
This could have knock-on effects on pricing, contracts, and profitability for Aussie exporters.
How These Tariffs Could Impact Your Business
For Australian businesses that import directly into the US from China, Canada, or Mexico, price hikes are inevitable. eCommerce businesses selling US-bound products will see higher costs. Manufacturers relying on imported components will need to absorb or pass on increased prices. Meanwhile, shipping costs could rise as supply chains shift and freight demand fluctuates.
US buyers will look for cheaper alternatives, which could create opportunities for Australian-made products in the US market. At the same time, Chinese businesses may flood other markets, including Australia, with excess stock, undercutting local suppliers.
The Australian dollar has already dropped due to trade uncertainty, making imports more expensive. However, this could be an advantage for Australian exporters — your products just became more competitive in the US market.
What Should You Do Next?
This is where smart businesses get ahead of the curve. Don’t wait for tariff-related price spikes to hit your bottom line — start planning now.
1. Run the Numbers
Use our free Tariff Scenario Planner to model how these tariff changes could impact your cost structure and profitability.
2. Evaluate Alternative Supply Chains
Can you shift sourcing to a country not impacted by US tariffs? Now’s the time to assess your options.
3. Renegotiate Contracts & Pricing
If you import or export affected goods, review supplier agreements and pricing structures. Can you pass on some of these costs?
4. Hedge Against Currency Fluctuations
With the AUD fluctuating, financial instruments should be considered to manage foreign exchange risks.
5. Monitor Policy Changes
Canada and Mexico have 30 days to negotiate. Australia may still lobby for an exemption. Stay informed by following our social channels closely and subscribing to our monthly newsletter.
Plan Your Next Move
These tariffs are already causing market ripples. If your business is exposed, now is the time to act.
- Don’t wait until your costs spike — run some numbers with our Tariff Scenario Planner via the form below
- Assess your supply chain and explore alternative options
- Consider your pricing and cost management strategy
- If you’re exporting, now might be the time to double down on US sales while Australian products remain price-competitive
Global trade is shifting fast, and US trade tariffs are already impacting costs, supply chains, and market dynamics. These changes could really shake things up, especially if you run an eCommerce brand that trades internationally.
The problem? Increased costs, supply chain disruptions, and potential pricing pressures could erode profits. The solution? Proactive planning. You can minimise risks and seize new opportunities by running the numbers, adjusting your sourcing strategies, and staying informed.
