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Briefs

US tariff update

US tariff update

4 April 2025

This member brief provides an update on the latest announcement by the United States of America on the application of tariffs.

US tariff announcement

On 2 April EDT (3 April AEST), President Trump announced his Administration’s ‘Reciprocal Tariffs’ policy.  Under this policy

  • an ad valorem baseline duty of 10 percent will apply to imports from all trading partners, effective from 5 April.
  • the ad valorem duty shall increase for certain trading partners as enumerated in Annex I.  These will be effective from 9 April.
  • Some goods will not be subject to the baseline tariff or country-specific reciprocal tariffs announced ( see Annex II for details on exemptions).

Australian-originating food, beverage and grocery exports will be subject to tariffs of 10 per cent on import into the United States.

Implementation

  • The duty rate of 10 percent shall apply for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern daylight time on April 5, 2025 (3.01pm Saturday, 5 April AEST).
    • Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 5, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 5, 2025, shall not be subject to such additional duty.  
  • Country-specific duty rates as per the Annex 1 will be applicable from 12:01 a.m. eastern daylight time on April 9, 2025, (3.01pm, 9 April AEST).
    •  goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12:01 a.m. eastern daylight time on April 9, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12:01 a.m. eastern daylight time on April 9, 2025, shall not be subject to these country-specific ad valorem rates.  

Government action

The Australian Government has announced that reciprocal tariffs on US goods will not be applied. The Department of Foreign Affairs and Trade is analysing the impacts of the tariffs on Australia and global trading partners announced and a forward trade agenda, including revival of negotiations with other trading partners, diversification support and business missions are being considered.   

Member action

Members are advised to refer to the following resources for updates and announcements

  • Refer to Go Global Toolkit and  US tariff FAQ for updates on the latest developments.
  • AUSTRADE has organised a briefing on 9th April to help exporters navigate US tariff changes (Register here)

For further information, please contact shalini.valecha@afgc.org.au.

Shalini Valecha
Director, Industry Affairs