The Trump administration has made a rolling set of announcements on the application of tariffs on imports into the United States of America. Ai Group will update this page as we gain more understanding of the quantum and application of these tariffs.

As with all major disruptions, the most important thing that companies can do is focus on communication and relationships. We recommend that you are communicating regularly with your customers, suppliers, service providers and peers.

In some applications of the tariffs on imports from some countries, the percentage of US content is excluded from the new tariff upon application to the US Commerce Department. It is essential that you understand your supply chain and have robust material data processes so that you can support your US-based customer in any application that they may make.

 

Known Knowns as of 17 April 2025

Please note the effective dates and that it will take time for subordinate guidance to be updated to reflect new executive orders. On 10 April and 11 April there were announcements that rolled back or temporarily suspended some tariffs.

The steel, automotive and base line tariffs remain in place.

Tariffs applying to consumer electronics and the semiconductor supply chain have been temporarily paused. The White House outlined the exempted products in an amended Executive Order here on 11 April EDT.

25% tariff on all steel and aluminium and their derivatives (products with significant % of metal) was effective 12:01 a.m. USA Eastern Daylight Time on March 12, 2025.

• Import guidance for Steel and derivatives
• Import guidance for Aluminium and their derivatives

25 % tariff on automotive; passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks and their parts (engines, transmissions, powertrain parts, and electrical components) from all countries was effective 12:01 USA Eastern Daylight Time on April 3, 2025.

• Import guidance for automotive products

10% baseline tariff on most other Australian products

• Some goods will not be subject to the 10% Tariff. These include: (1) articles subject to 50 USC 1702(b); (2) steel/aluminum articles and autos/auto parts already subject to Section 232 tariffs; (3) copper, pharmaceuticals, semiconductors, and lumber articles; (4) all articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States.
• This took effect April 9, 2025 at 12:01 a.m. EDT.
• Import guidance for all new tariff lines.
  • This document outlines the rules for the baseline 10% tariffs that apply to all countries, as well as listing the additional tariffs for countries other than Australia.  
  • The so-called reciprocal tariffs that are additional to the baseline, have been paused for 90 days.  
  • Annex Two of this document lists the impacted products.  

Chinese goods to the United States are now subject to up to 245% in accumulative tariffs (although the majority of goods are only subject to an accumulative 145% in tariffs). These comprise:

• the 125% 'reciprocal tariff' on all goods from China, Hong Kong and Macau;
• a 20% tariff on all goods, which is linked to perceived inaction from China to curb the transit of fentanyl into the US; and
• goods-specific tariffs ranging from 7.5% to 100% linked to sector-specific Chinese trade practices the US regards as hostile. Examples of products affected by these tariffs include electric vehicles and medical supplies.

This White House announcement outlines increased charges for packages from China subject to di minimis conditions, increasing the tariff from 90% to 120% and adds a USD100 charge per package, up from $75. 

Australian di minimis packages are not subject to these additional charges.  

Australian goods are not subject to cumulative tariffs (steel + auto part + Australia).

Which tariff is for me? The hierarchy of tariffs appears to be Steel, then automotive, then baseline.

The White House has stated that around 75 nations are seeking to negotiate new trade agreements to end the tariffs. Australia is one of those countries. The Australian Industry Group continues to closely monitor the status of these negotiations and is in regular contact with relevant Australian officials.

Who pays?

The tariff is applied by product, not company. An Australian company sending Chinese-made product to the US, could be hit by a 125% tariff, not 10%. It is important to understand your supply chain and country of origin of your products.

It is unclear what, if any, Australian products might intersect with the additional goods-specific tariffs (ranging from 7.5% to 100%) the US has levelled against some Chinese products, such as electric vehicles.

Exporters paying under the following International Commercial Terms (Incoterms) will be responsible for paying the tariffs.

DDP (Delivered Duty Paid): The seller (exporter) takes on the maximum responsibility, covering all costs, including import duties and taxes, and delivering the goods to the named place, cleared for import.

All other Incoterms: the importer is responsible for paying all import charges.

How are they calculated?

They will be calculated on the FOB (Freight on board) value of the product.

 

Known unknowns

When they will end?

Will there be more tariffs and/or more temporary exemptions?

Will the current figures change?

Will current exemptions be included later on?

What is the full scope of Australian products impacted?

 

Unknown unknowns

The impact on individual economies, especially our major trading partners.

How individual economies or companies will react, or what the consequences of that rection might be.

Impact on the Australian economy, positive or negative.

Currency exchange impacts.

 

What can you do?

Email industry.policy@aigroup.com.au with questions and stories we can use for advocacy on your behalf.

Evidence of Australian Origin will grow in importance. Ai Group offers this service to members. Email tradedocs@aigroup.com.au

---