US tariffs are making waves in global trade, and if you’re a business shipping goods to the US, they’re likely on your radar. From air freight zipping electronics to sea freight hauling machinery, tariffs can hit your bottom line hard. But what exactly are they, and how can you stay ahead? In this guide, we’ll break down US tariffs, explain their impact on businesses like yours, and share tips to keep your shipping smooth. Let’s dive in!
What Are US Tariffs?
US tariffs are taxes slapped on goods imported into the United States, collected by the US Customs and Border Protection. They’re designed to protect domestic industries, raise government revenue, or counter unfair trade practices, like subsidised exports from other countries. In 2025, tariffs are a hot topic with President Trump’s policies ramping up levies, including a 25% tariff on imports from Canada and Mexico (paused until March 2025) and a 10% additional tariff on Chinese goods, alongside existing duties.
Tariffs vary by product and country, based on Harmonised System (HS) codes. For example, steel might face a 25% tariff, while clothing could see 7.5%. They’re paid by the importer, but costs often trickle down to consumers or are absorbed into business margins. For Australian businesses shipping to the US, understanding these taxes is key to staying competitive.
How Do US Tariffs Impact Australian Businesses?
US tariffs can reshape how businesses operate when shipping to the US. Here’s how they hit:
- Higher Costs: Tariffs increase the landed cost of goods. A 10% tariff on a $100,000 shipment from Australia adds $10,000 to your expenses. Medium-sized businesses with tight margins feel the pinch, while larger firms may struggle to absorb costs across high-volume shipments.
- Supply Chain Disruptions: Tariffs can cause customs delays or force businesses to rethink sourcing. For instance, a 145% tariff on Chinese goods (effective April 2025) has pushed some firms to abandon Chinese suppliers, disrupting established supply chains.
- Price Hikes or Margin Squeeze: To cover tariff costs, you might raise prices, risking customer pushback, or eat the costs, shrinking profits. A 2019 study showed an 8% drop in clothing imports after a 7.5% tariff hit, proving tariffs can dent demand.
- Retaliatory Tariffs: When the US imposes tariffs, countries like Canada or China often hit back. If you export to these markets too, your goods could face higher costs abroad, complicating global trade.
- Example: An Australian electronics firm shipping $500,000 worth of gadgets to the US via air freight faced a 10% tariff, adding $50,000 to costs. They passed half to consumers, raising prices, and absorbed the rest, cutting margins by 5%.
Verdict: Tariffs raise costs, disrupt logistics, and force tough pricing decisions, especially for businesses reliant on sea or air freight to the US.
Sea Freight vs. Air Freight: How Tariffs Apply
Tariffs hit both sea and air freight, but the impact varies:
- Sea Freight: Ideal for bulk goods like machinery, sea freight faces the same tariff rates but benefits from lower per-unit shipping costs.
- Air Freight: Perfect for urgent or high-value items like tech, air freight’s higher costs amplify tariff pain. A 25% tariff on a $200,000 air shipment adds $50,000, compared to $5,000 for a $20,000 sea shipment.
Want to optimise your choice between sea and air to balance tariffs and timelines? Get in touch to speak to one of our freight forwarders.
Tips to Navigate US Tariffs for Shipping Success
Don’t let tariffs ground your business. Here are practical tips to stay agile:
- Know Your HS Codes: Use the US Census Bureau’s Schedule B Search Engine to find your product’s 6-digit HS code. This helps you pinpoint exact tariff rates and avoid surprises.
- Leverage Free Trade Agreements (FTAs): The Australia-US Free Trade Agreement (AUSFTA) eliminates tariffs on many Australian goods. Check if your products qualify to save big.
- Diversify Suppliers: Source from countries with lower or no tariffs, like Vietnam or Thailand, to dodge high US levies on Chinese goods. This spreads risk and cuts costs.
- Use Landed Cost Calculators: Tools like Easyship’s Tax & Duty Calculator help you estimate tariffs, duties, and shipping costs upfront, aiding pricing decisions.
- Partner with Experts: Work with us. We handle customs paperwork, optimise routes, and advise on tariff exemptions, saving you time and money.
- Explore Duty Drawbacks: If you import goods to the US and later export them, you may reclaim duties paid. Consult our customs brokers to check eligibility.
- Communicate with Customers: If tariffs force price hikes, be transparent. Explain the quality or value of your goods to maintain trust.
Why Work with Control Global Logistics for US Shipping?
At Control Global Logistics, we’re your tariff-busting partner. With years of expertise in sea and air freight, we help Australian businesses tackle US tariffs head-on. From finding cost-effective routes to streamlining customs clearance, our team ensures your shipments land smoothly. Our strong carrier relationships and real-time tracking give you confidence, no matter the trade policy shifts.
Conclusion
US tariffs are a challenge, but they don’t have to sink your business. By understanding how they work, planning for their impact, and using smart strategies, businesses can keep shipping to the US profitably. With Control Global Logistics, you’ve got a trusted ally to navigate the complexities of tariffs and global trade in 2025. Ready to ship smarter? Contact us for a tailored solution today!