In an increasingly volatile global economy, the latest wave of US tariff hikes and trade restrictions has sent ripples across international supply chains. For many Chinese business owners and import-export operators in Australia, the question is not just “what’s happening?”—but more importantly, “how do we adapt and grow amid uncertainty?”
Over the past few weeks, US President Trump’s administration has aggressively reinstated and expanded tariffs across steel, aluminium, automotive parts, and general commodities under a mix of legal frameworks including Section 232, IEEPA, and Section 301. Despite some recent softening following the US-China trade deal, tensions remain high, and tariff rates on certain Chinese imports to the US now total as much as 145%.
But what does all this mean for Australian-Chinese businesses, and why should you pay close attention?
It’s Not All Bad News for Australia
Australia’s current tariff exposure is relatively modest compared to other nations. For now, most Australian goods entering the US face a 10% tariff, which is lower than French, Japanese, or Chinese competitors. For businesses exporting premium products—such as Australian wine, wagyu beef, dairy, or luxury goods—this creates an unexpected market advantage.
In fact, as some countries face tariffs of up to 50%, Australian exporters may find themselves in an enviable position—if they act quickly and smartly.
But the Risks Are Real
While direct tariffs may be lower, indirect impacts on supply chains are likely to be severe. Many Chinese-Australian businesses rely on goods or components that are later exported from Asia to the US. If those final exports become uncompetitive due to US tariffs, demand for Australian inputs could fall sharply.
Further, compliance burdens are rising fast. With the US now allowing “tariff stacking”, businesses are finding themselves paying multiple overlapping duties on a single shipment. Add in fluctuating exchange rates, delayed shipments, and legal ambiguity—and it’s no wonder many business owners are feeling overwhelmed.
What Should You Do Now?
Now is not the time for guesswork. Businesses need to take deliberate, strategic action:
- Reassess supply chains to understand where exposure lies
- Model tariff impacts on product pricing and landed costs
- Explore alternative sourcing, logistics routes, and customs duty-saving strategies
- Strengthen compliance and tax reporting frameworks to avoid penalties
- Seek qualified advice before making cross-border or capital investment decisions
We’re Here to Help – Your Trusted Partner in Global Trade Strategy
At Boa & Co. Chartered Accountants, we work closely with Chinese-Australian businesses to navigate complex tax, compliance, and trade environments. Whether you’re an exporter, importer, investor, or eCommerce seller, our team brings deep expertise in:
- International tax planning
- Customs duty optimisation
- Business structure advisory
- Risk mitigation strategies across jurisdictions
We understand both the global landscape and the local Chinese-Australian business mindset, helping you turn disruption into opportunity.
To speak to our experienced advisors today, call us on 1300 952 286, email us at [email protected], or visit www.boanco.com.au to learn more.
Your business deserves more than just survival—it deserves a strategy. Let Boa & Co. help you lead with confidence, no matter where the world economy turns next.