Queensland open for business in a complex world 

The Trump Administration has suspended ‘reciprocal tariffs’ of between 11 and 50 per cent on almost 60 countries for a period of 90 days.

While these reciprocal tariffs have been paused, the United States has raised the tariff on imports from China to 145 per cent.

The countries with suspended tariffs will now be subject to a 10 per cent ‘baseline’ tariff which applies to over 180 countries, including Australia. These tariffs have some exemptions, including pharmaceuticals, oil and gas, semiconductors, gold, copper and certain critical minerals unavailable in the US.

It is important to note that despite the suspension of higher reciprocal tariffs, the tariffs that remain in place still represent a significant increase in the United States’ weighted average tariff rate (the average tariff weighted by volume of imports).

Although there has been some speculation to the contrary, there are no new sector specific bans or additional tariffs on Australian goods or services (a 25 per cent tariff on steel and aluminium entered into effect on 12 March. The 10 per cent baseline tariff will apply on top of this, bringing the total to 35 per cent).

United States remains key trading partner

The United States is an important trade and investment partner to Queensland, with $3.6 billion worth of exports during 2024. This does not change, and Trade and Investment Queensland (TIQ) will continue to work to support our clients to succeed in this market.

While recognising that tariffs can present challenges to Queensland businesses operating across highly integrated global supply chains, they can also offer opportunities.

The tariffs come at a time when Queensland businesses are faced with many other challenges, not least significant flooding.

It has never been more important for Queensland to support its exporters with one in five Queensland jobs supported by trade.

Our work continues

TIQ continues to actively engage with its clients and industry who are trading with the United States, providing them with the knowledge and insight to continue to succeed there and also to understand and explore potential opportunities for diversification.

This includes ensuring that Queensland businesses are aware of the support announced by the Federal Government, including:

• Clarification that Australia will not impose reciprocal tariffs and that Australia will continue to engage with the Trump Administration on tariffs.
• Financial assistance - $50 million fund has been established to help exporters identify and access alternative international markets.
• Zero-interest loans - A $1 billion program offering zero-interest loans has been launched under a new economic resilience initiative to bolster impact sectors.

TIQ and Queensland remain open for business with the United States and the world.