Updated 2 June 2025
Originally published 10 June 2025 / ~4 minutes of reading
Updated Steel and Aluminium Tariffs: 4 June 2025
Since the 25% Steel and Aluminium import tariffs were announced in March, the situation has escalated. On 31 May, U.S. President Donald Trump announced that these tariffs would be doubled – from 25% to 50% – effective 4 June 2025.
For many exporters, this raised concerns about the future of trade with one of Australia’s most significant economic partners.
Here are some questions we’ve discussed and added to:
- What’s changing
- What it means for exporters
- How logistics experts can help ease the transition
- How you should stay prepared for tariff changes
1. What are the new tariff rates on Australian Steel and Aluminium?
The U.S. is implementing:
- 50% tariff on steel and aluminium imports*
- The tariffs apply to:
- steel and aluminium
- steel and aluminium products
- a range of goods with steel and aluminium components
These tariffs fall under national trade protection measures, and while Australia was once exempt, the latest changes remove that status.
* We are monitoring these tariffs in the press and at the Australian Government’s Department of Foreign Affairs and Trade, which are subject to change.
2. Why has the USA imposed tariffs on Australian steel and aluminium?
Possible reasons include:
- Strengthening domestic manufacturing and reducing import dependence
- Using tariffs as an economic lever during election season
- Raising revenue from foreign-sourced goods
However, the decision has met strong criticism from Australian officials.
“These tariffs are unjustified and not the act of a friend,” said Trade Minister Don Farrell. “They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade,” according to an article published in the Australia Guardian.
Australia continues to advocate for full removal of the tariffs through diplomatic channels.
In the longer term, they plan to promote the use of local products (“Buy Australian”) and diversify international markets.
3. When did the tariffs come into effect?
- Initial 25% tariffs: Took effect on 12 March 2025
- 50% increase: Announced 31 May, effective 4 June 2025
4. How do these tariffs affect Australian exporters?
Tariffs impact both pricing and market access. Here are the key effects:
- Increased Costs
Australian exporters will face significantly higher landed costs in the U.S. due to the new duties. - Reduced Competitiveness
Products from countries without such tariffs will have a pricing edge. - Contract Complications
Long-term contracts may need revisiting, especially those based on pre-tariff pricing. - Higher Compliance Requirements
Export documentation, customs declarations, and product origin proofs will become more scrutinized.
5. What can logistics managers do?
As a global 3PL network, we understand how supply chain shifts can disrupt operations.
Here’s how we help clients adapt:
- Customs & Documentation Support
Ensure correct filings to avoid delays and fines. - Route Optimization
Rerouting through trade-friendly ports or leveraging FTZs (Foreign Trade Zones) can mitigate tariff impact. - Cost Forecasting & Analytics
Providing visibility into how tariffs affect shipping budgets and timelines.
6. Where can you look to diversify your business’s export markets?
It may be the right moment to expand beyond the U.S. Here’s why:
- Emerging markets in Southeast Asia and the Middle East are increasing demand for raw materials.
- EU markets are exploring alternative suppliers amid shifting global trade alliances.
- Regional trade agreements like RCEP offer lower barriers and growing opportunities.
7. How should you stay prepared for the tariff changes?
Remaining agile is key in global trade. Here’s what we recommend:
- Regularly review contracts and shipping terms.
- Partner with experienced logistics providers, who can shortcut you through new documentation required.
- Stay informed on trade policy updates, by keeping in touch with logistics experts at Global 3PL.
- Ask a Global 3PL logistics professional for advice on alternative markets for growth.