After decades of advancement towards trade liberalisation and global marketplaces, national governments have increasingly become protectionist to favour their own economy and businesses.
So what does that mean for Australia? Can we fight back against the tide?
The United States under the second Trump Administration have been aggressive in their pursuit of trade barriers, raising sharp tariffs or import duties on goods around the world, with a base rate of 10% with some countries’ imports being levied with 41% tariffs (Britannica, 2025). This has represented a shift towards targeted trade barriers and measures – even against long-standing free trading partners such as Canada and Mexico, all party to the North American Free Trade Agreement (NAFTA).
Tariffs are just one set of measures to protect a national economy from cheaper imports; quotas, subsidies, and increased regulations can also affect prices and competition. In many instances, countries who tariff will see their own imports tariffed or regulated in kind.
As capital flows and goods trading are truly global, tariffs imposed by one country over another rarely have limited bilateral impact. It flows throughout global supply chains. Materials imported to one locale, refined in another country, then exported to another for further may have compounding tariffs levied on top of each transaction. By the time the finished product is imported, what once may have been a cheap price relative to a domestically produced product may balloon out to being cost inefficient.
As we witnessed during the COVID-19 pandemic when borders stayed shut for extended periods, it became starkly apparent Australia (among other nations) became dependent on foreign imports of goods and materials.
In 2021, the Suez Canal was blocked by the MV Even Giver when it ran aground for six days. This devastated the flow of trade around the world taking months – perhaps years – to rectify.
Approximately 12% of all global trade flows through the canal each day, estimated to equate to $9.6 billion (USD). According to the BBC, German insurance giant Allianz estimated that the longer the blockage went on, it could have reduced global trade growth by 0.2 to 0.4%! All this in under a week!
It effected Australian imports of cars, which were already affected by a global semi-conductor shortage, raw materials, spare parts, consumer goods, and heavy machinery.
With instability in global trade, rising tariffs, and tensions between regional powers such as China and Russia, with the former representing $10.4 billion of imports into Australia, buying locally made materials and products are the best way to combat escalating trade barriers.
The current state of play – Australia vs USA (vs the World)
According to the latest information from the Department of Foreign Affairs and Trade, all goods exported to the United States from Australia will be subject to their baseline 10% tariff, including the de minimis exemption for low-value goods under $800USD from 29th August 2025. (DFAT, 2025).
Effective 4th June 2025, Australian steel and aluminium imports to the US will incur a 50% tariff, an increase from the 25% tariff that was imposed on 12th March 2025. The tariff encompasses specific derivative products containing steel and aluminium. Automobiles, light trucks, and specific automotive parts incur a 25% tariff. Certain copper and copper-containing products will incur a 50% tariff.
As major players China, the United Kingdom, and the European Union grapple with import restrictions from their largest trading partner the United States, it’s likely that they will raise tariffs to protect their own industries.
Though Australia is party to a free trade agreement with China on most goods, Australian exports of barley to the People’s Republic were slapped with an 80% “anti-dumping” tariff in August 2023, to much consternation from farmers and exporters (it was later wound back). Individual abattoirs and some coal and timber exports were also affected by the restrictions. There are no guarantees this won’t happen again, especially as China’s economy is a far cry from the powerhouse it was in the 2000s, and is racked by financial instability due to a contagion of major property development company failures, e.g., the $300 billion meltdown of Evergrande.
Business and consumers prefer Australian
The Australian Made Campaign (AMCL) by the Australian Chamber of Commerce and Industry (ACCI) has emphasised sovereign manufacturing, supply, and capability through its distinctive green and gold kangaroo logo adorning licenced Australian Made goods. Roy Morgan polls show that 99% of Australians recognise the logo and 93% favour locally made products.
“A strategic approach to ‘buy local’ initiatives, incorporating consumers, businesses and all levels of government is what is needed right now,” Australian Made Chief Executive Ben Lazzaro said in a statement released in April this year.
“Improving government and business local procurement policies by prioritising Aussie makers will help alleviate the impact of tariffs while strengthening the economy and creating local jobs. Given that federal government contracts were estimated to be valued at $100 billion last financial year, a refocussing on Australian-made suppliers has the potential to have an enormous impact.”
As opposed to cheap foreign imports with lower thresholds of quality assurance, Australian Standards are amongst the most stringent and highest in the world. Lawyer and risk and standards legal researcher Sam Hossain said “standards can ensure quality and integrity of a production process that an ordinary consumer can trust.”
Support Australian industry with locally made material handling equipment
Sitecraft is one of 4,500 Australian businesses certified Australian Made; supplying mining, heavy commercial, warehousing, and recreation industries with safe, high quality, and locally made material handling equipment. Sitecraft manufactures, services, and supplies purpose-built solutions including warehouse trolleys and heavy duty workbenches.
Sitecraft also manufactures Australian Made brands such as Logistec lifters and Versatip industrial-rated bin lifters and tippers. These widely used wheelie bin tippers are now supplied with a 3-year warranty.
Every business that chooses Australia over foreign imports helps Australia fight back against punitive trade barriers, as well as protect us from outside control of supply chains.
To find out how you can buy Australian Made material handling equipment, contact Sitecraft and discover how you can gain over a quarter century of locally-made materials handling experience and excellence.
