Australia has avoided higher US tariffs, but the nation’s chamber leaders say the remaining baseline rate risks could dent trade and investment opportunities between the two countries.
The US Government announced on July 31 it had retained a 10% baseline tariff on Australian imports and modified rates for other trading partners, effective from August 7.
No other country has a baseline tariff lower than what has been imposed on Australia.
However, some Australian imports to the US are subject to higher tariffs, including:
- Steel and aluminium: 50% from June 4. This is an increase from 25% which was imposed on March 12.
- Automobiles, light trucks and certain automotive parts: 25%.
- Some copper and copper-containing products: 50% from August 1.
Meanwhile, some goods are exempt from the 10% baseline tariff, including:
- Certain energy products, coins and bullion.
- Some products listed as exempt while the US conducts sector-specific investigations around national security.
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Chamber leaders unite on tariff response
The State and national chambers said while it was a positive outcome, it was still an unwarranted impost that risked undermining the Australian-US trade relationship.
CCIWA Acting co-CEO Aaron Morey said the implications for Western Australia extended beyond direct trade with the US.
“Western Australia is a trading economy and while the direct impact on trade to the US will be reasonably contained, the bigger concern for WA will be the flow-on impacts from the US tariffs on China,” Morey said.
“We look to the Commonwealth to continue to work with the US government and seek to minimise the impact of these tariffs on Australia’s global competitiveness.”
CCIWA’s June Business Confidence survey found WA business concern on tariffs and trade tensions were increasing, with 19% identifying it as threat to their operations – up from 9% six months ago.
Australian Chamber of Commerce and Industry (ACCI) CEO Andrew McKellar said the tariffs imposed on Australia were unjustified.
“It has to be remembered that Australia imposes no tariffs on US products,” McKellar said.
“We also have a strong trade surplus in favour of the US in terms of our two-way trade.
“We will continue to work with the [Federal] Government and we’ll continue to prosecute the case that there should not be trade barriers between our two economies.”
CCIWA Acting co-CEO Matt Golds recently returned from an ACCI-led study tour to Washington DC with other chamber leaders, where discussions reinforced the strategic alignment between WA’s capabilities and US priorities.
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