As global trade tensions escalate, thousands of Australian businesses are being forced to rethink their export strategies—especially those with supply chains linked to China or customer bases in the United States.
At the centre of this disruption is former U.S. President Donald Trump’s recent move to impose sweeping new tariffs, including a 145% tax on goods manufactured in China. This is already impacting Australian businesses like skincare brand Blaq, which had to halt exports after a $125,000 “Trump tariff” was added to one of their shipments. Products once sold for $29 would now retail close to $80 in the U.S.—a price point that simply doesn’t work.
And it’s not just skincare. More than 12,000 Australian businesses export to the U.S., and many rely heavily on Chinese manufacturing. These sudden tariff hikes have left them scrambling for new strategies: pause exports, move production to the U.S., or shift focus to other markets in Asia.
A Wake-Up Call for Australian Exporters
Even though only about 4% of Australia’s exports go directly to the U.S., the real danger lies in what economists call “global confidence”. If international businesses lose trust in the predictability of the U.S. market, investment and trade could slow everywhere—including Australia.
That’s why forward-thinking businesses are already taking steps:
- Reviewing supply chains to reduce reliance on China or diversify manufacturing locations.
- Exploring new export markets, especially in Asia where demand for Australian goods remains strong.
- Setting up operations in the U.S., like some businesses are doing, to avoid tariffs altogether.
At Boa & Co., we’ve seen clients in industries like skincare, tech, and food exports urgently reassessing their corporate structures, tax strategies, and market entry plans.
It’s Not All Bad News
Where some businesses see obstacles, others see opportunity. Companies like Clean and Pure, another Australian skincare brand, are rushing back into the U.S. market while their larger competitors struggle with supply chain headaches.
Because Clean and Pure manufactures outside of China and remains nimble, they’re setting up a warehouse in Texas and using this moment to grow market share while global giants like Nivea and Burt’s Bees reorganise.
What You Should Be Doing Right Now
This is a critical moment for Australian exporters and manufacturers—especially those with complex international operations or high exposure to the U.S. and China. Whether your business is facing higher costs, falling margins, or new growth opportunities, now is the time to act.
At Boa & Co. Chartered Accountants, we help businesses:
- Understand and plan for global tax and trade risks
- Reorganise supply chains and business structures
- Explore foreign entity setup, including in the U.S.
- Maximise export benefits while staying compliant
- Use tax planning to manage costs and protect profits
We speak your language—literally and financially—and we understand the unique challenges faced by Chinese-Australian businesses operating internationally.
Call us today at 1300 952 286, email us at [email protected] or visit www.boanco.com.au to book a confidential consultation.
Let’s make sure your business is ready to adapt, compete, and thrive—no matter what the global headlines bring.