Australian business says US tariffs will hit costs, calls for restraint
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More news: Health equipment provider Fisher & Paykel has warned that new US tariffs will increase its costs in the 2026 financial year and delay progress towards its gross margin target.
The pharmaceutical group said that the new duties, which include a blanket 10% tariff on products manufactured in Australia and New Zealand, will impact its exports to the US, 40% of which are supplied from New Zealand.
Fisher & Paykel noted that it does not expect a material impact on profit for the current financial year.
Elsewhere, winemaker Treasury Wine Estates said it expects the new tariffs to have a "minimal impact" on its bottom line. It noted that its Americas division is "well placed" given that 85% of its first-half earnings were from US produced wine.
Ai Group says US tariffs to lift costs, disrupt advanced manufacturing
More news: The Australian Industry Group says US tariffs will undoubtedly spark retaliation, imposing barriers on well-known trading relationships and driving up costs for businesses and consumers.
"Today's announcement that Australia will be subject to a minimum baseline 10% tariff is disappointing, but not unexpected, as we deal with an American administration hellbent on remaking the international economic order," Ai Group CEO Innes Willox said in a statement.
He said Australia's advanced manufacturing sector, which has very deep ties to the US, was of particular concern because 22% of our elaborately-transformed manufactured exports go to the US, with much higher rates for advanced metals, chemicals and engineering products.
"Global supply chains in these high-value, high-productivity industries cannot be quickly rejigged in the same way that commodities can. Our advanced manufacturers will face profound disruption as global supply chains adjust around the new US tariff wall," Willox said.
Echoing his comments, US business group, The International Chamber of Commerce, is said the news of the tariffs is a watershed moment for the world economy.
“This is, without doubt, a shock to the global trading system but it need not result in a systemic crisis. The US is an economic superpower but only accounts for 13% of global imports. How other nations respond to the new duties will ultimately determine the scale and depth of any economic fallout from ‘Liberation Day’," ICC Secretary General John WH Denton said in a statement.
Business Council disappointed by US tariffs on Australia
The news: The Business Council says it is deeply disappointed by the size and scale of global tariffs imposed by the US on Australia and other trading nations.
The numbers: US President Donald Trump announced his administration will impose 10% tariffs on Australia as part of a rollout of reciprocal tariffs on countries around the world. The tariffs for each country were announced on X by the official White House account. Trump also singled out Australian beef exports while announcing the tariffs, saying Australia "won’t take any of our beef".
The context: Business Council CEO Bran Black said these tariffs would hurt economic growth but urged a measured response, recognising the importance of free trade to our prosperity.
“We don’t support retaliatory tariffs and strongly urge against them, because there are no winners in a trade war, which would only risk making our situation worse by forcing Australians to pay more and reducing job security. As a trading nation, free and open access to global markets is critical for Australia, especially as one in every four of our nation’s jobs relies on trade,” he said in a statement.
Black said the BCA would continue to work with officials in Australia and Washington D.C., along with the government and the opposition, but added that with the world now a more uncertain place, it is more important that policymakers prioritise making Australia a more competitive place to do business and attract investment.
