US tariff changes: how to minimise risk amid increased uncertainty
The latest United States tariff on imported goods has created more uncertainty in global trade flows and supply chains.
On February 20, the US Supreme Court ruled the US Administration’s ‘reciprocal tariffs’ unlawful – including the 10% duty on Australian exports – but the decision did not affect ‘national security’ tariffs, which continue to apply to certain goods.
US President Donald Trump responded on February 21, imposing a new global 15% Temporary Import Surcharge for up to 150 days under a different law. This increase has not yet been implemented by the US Administration.
Federal Trade Minister Don Farrell said, ahead of his visit to the US this week, he would “continue our advocacy for free and fair trade between our two countries”.
For WA businesses, preparation is key. In a more volatile trade environment, resilience comes from understanding exposure early and acting before disruption hits.
CCIWA Head of International Trade Services Michael Carter said businesses were in new era of trade uncertainty.
“Major trade policy changes such as these tariffs can make it harder for exporters to price contracts, manage risk and plan ahead,” he said.
“When the rules are changing, even incrementally, it creates hesitation across supply chains.
“Businesses need clarity to invest, to negotiate and to ship with confidence.”
How uncertainty flows through supply chains
WA exporters may still face indirect pressure, despite their goods not being directly targeted.
Tariffs can cause:
- Sudden changes in sourcing behaviour
- Border delays as customs scrutiny increases
- Higher freight and insurance costs
- Contract renegotiations
- Currency volatility
- Investment delays
Three steps to minimise tariff risk now
- Stay in touch with your US customers and customs brokers – they can provide insight on market reaction from their side and if there’s an opportunity to continue exporting at the same or similar prices.
- Diversify your markets – consider additional opportunities in prospective new markets.
- Reassess your pricing structure – if the US market is in your medium- to long-term plan, can you offset the tariff cost by adjusting your price?
Businesses operating within global supply chains may also experience impacts if suppliers or customers are affected by tariff shifts.
Carter said exporters will be looking to derisk, diversify and explore additional or alternative export markets whilst navigating the uncertainty of the US tariff changes.
"Diversification will be their game plan going forward,” he said, noting the historic strength of Australia and the US’s trade relationship.
“It is important note that we still have a ‘gold standard’ Australia-United States Free Trade Agreement (AUSFTA) which became in force in 2005 – we’ve been trading with the US since the 1800s.”
Review contracts and payment terms
Trade volatility places greater importance on contractual protections.
Australian Chamber of Commerce and Industry CEO Andrew McKellar encouraged exporters to examine their agreements closely.
“We're urging them to go and talk to their trade advisors, talk to your state or territory chamber of commerce and look closely at those contract terms and provisions so that we can understand how any change from here in tariff administration is going to impact,” he said.
This means reviewing:
- Tariff and cost pass-through clauses
- Delivery timelines
- Payment terms
- Currency exposure
- Force majeure provisions
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Why export documentation matters more than ever
In times of trade disruption, accurate documentation becomes critical.
Certificates of origin (COO), tariff classifications and compliance paperwork determine whether exporters can access preferential treatment under the AUSFTA and other free trade agreements.
“Heightened trade tensions often lead to closer inspection at borders, making accuracy and record-keeping even more important,” Carter said.
“Errors can lead to unexpected duties, shipment delays or rejected goods.”
He said exporters should review their tariff classifications and ensure they can substantiate origin claims, particularly where goods incorporate inputs from multiple countries.
CCIWA’s trade experts can help ensure your documentation is correct and compliant, including issuing COOs and advising on rules of origin.
What WA exporters should do now
In a more fragmented global trade environment, proactive planning is critical.
Businesses should consider:
- Reviewing contracts and payment terms
- Auditing tariff classifications and COOs
- Mapping supply chain dependencies
- Stress-testing pricing and margin assumptions
- Seeking specialist trade advice early
“Trade volatility isn’t new, but it is becoming more frequent,” Carter said.
“The exporters who take the time to review their documentation, their contracts and their supply chain risk now will be far better placed to navigate whatever comes next.”
Do you have questions about navigating an increasingly volatile trade environment? We can help.
CCIWA’s International Trade Services team helps businesses reduce the time, cost and risk of going global. Contact the team for a free consultation on 08 9365 7620 or via [email protected].
