New U.S. Tariffs Take Effect: What Australian Exporters Need to Know

After months of consultation and market uncertainty, the United States has officially implemented a new round of tariffs affecting imports from 60 trading partners, including Australia.

Introduced under Section 301 of the U.S. Trade Act, the new measures took effect on 24 July 2026, with many Australian-origin goods now subject to an additional 12.5% tariff, depending on the product's tariff classification and any applicable exemptions.

While the announcement has attracted significant attention, the more important question for Australian businesses is what these changes mean in practice.

Why have these tariffs been introduced?

According to the Office of the United States Trade Representative (USTR), the tariffs are intended to encourage stronger action to prevent goods produced using forced labour from entering global supply chains.

The USTR determined that 60 economies, including Australia, had not implemented or enforced import restrictions that align with U.S. policy. As a result, country-specific tariff measures have now been introduced.

Australia's inclusion has surprised many in the industry. Australia already has a Modern Slavery Act and mandatory reporting obligations for many businesses, and only days before the U.S. announcement, the Australian Government unveiled additional reforms aimed at strengthening Australia's modern slavery framework.

Which products are affected?

The tariff schedules released by U.S. authorities cover a broad range of goods, including agricultural products, minerals, metals, manufactured goods, industrial equipment, textiles and consumer products.

However, not every Australian export will be affected.

A number of exemptions and transitional arrangements apply, including certain pharmaceutical products, civil aircraft and aircraft parts, some steel, aluminium and semiconductor products, humanitarian goods and cargo already in transit before the implementation date.

Because the tariff schedules are extensive, exporters should confirm whether their products fall within the affected U.S. tariff classifications rather than assuming the additional duty applies.

The timing is significant

The introduction of these tariffs comes as the U.S. container market is already beginning to shift.

Throughout the first half of 2026, many U.S. importers accelerated shipments in anticipation of potential tariff changes, creating an unusually early peak shipping season. The National Retail Federation expects July imports through major U.S. container ports to reach a record 2.47 million TEU, driven largely by businesses bringing cargo forward before the new measures took effect.

That surge now appears to be easing.

Drewry's World Container Index has recorded two consecutive weekly declines, with spot rates from Shanghai to both Los Angeles and New York falling as demand softens and carriers continue adding capacity back into the market.

Rather than creating another wave of frontloading, the new tariffs are more likely to influence buying decisions, inventory planning and pricing strategies during the second half of the year.

What should exporters consider?

The commercial impact will vary from one business to another.

Some U.S. customers may absorb the additional duty, while others may seek to renegotiate pricing or sourcing arrangements. Businesses exporting to the United States should consider reviewing:

• Whether their products are covered by the new tariff schedules.

• Who is responsible for paying the additional duty under their agreed Incoterms®.

• Landed cost calculations and pricing models.

• Inventory planning with U.S. customers.

• Existing contracts and future supply arrangements.

This is also a timely reminder that freight costs are only one component of the total landed cost. Tariffs, duties, compliance requirements and supply chain planning all play an important role in maintaining competitiveness.

Looking ahead

While the tariffs provide certainty about the current U.S. trade position, questions remain about how long the measures will stay in place and whether future discussions between the Australian and U.S. governments could influence later reviews.

For Australian exporters, now is the time to understand how the new measures apply to their products, review supply chain costs and ensure pricing strategies reflect the current trading environment.

As global trade continues to evolve, staying informed and planning ahead will be just as important as securing freight capacity.