Goods sent from Australia to the US reached $6.9 billion in the September quarter, increasing by more than $1 billion compared to the same time last year. The rise highlights how Australian exporters are navigating the challenges of US tariff policies, largely due to lower duty rates and strong demand from American buyers.
In April, most Australian exports were subjected to a 10% tariff after new protectionist policies were introduced by former US President Donald Trump. There were warnings that US importers would shift to local products as a result, but that has not happened. Instead, sectors such as agriculture, manufacturing and medical supplies have recorded strong growth.
Australia’s biggest export to the US is beef. Despite being singled out by Trump in his criticism of international trade, beef exports rose by 26% to $1.6 billion over just three months. Exports of other meats climbed by 19% to reach $540 million, while aircraft parts increased by 21% to $370 million. Exports of confidential items also reached a new high of $412 million, more than three times higher than last year.
The strong performance is being driven by a combination of fewer alternatives and relatively low tariffs. While Australian exporters face a 10% charge, competitors such as India and Brazil are contending with rates of up to 50%, giving Australia a pricing advantage. Port data supports the growth, with container shipments from major ports including Melbourne and Brisbane rising between 5.7% and 7.6% compared to the previous year.
However, not all sectors are in growth. Pharmaceutical exports fell by about 30%, even though they are not subject to US tariffs. These exports remain historically high and concerns about a 100% tariff on medicines have yet to materialise and currently pose little threat to the sector.
The broader trade outlook remains complex but positive. While some economists previously warned that the US tariffs could trigger a recession by lowering consumer demand, the American economy has stayed strong and continues to import large volumes of goods. Australia's free trade agreement with the US has proven to be a major advantage, offering benefits that many other trading partners do not enjoy under the current tariff climate.
