Australia Weighs Response as U.S. Tariffs Rise to 15%

Australia will “examine all options” after U.S. President Donald Trump announced a temporary 15% tariff on imports from all countries. The move came less than 24 hours after the Supreme Court overturned his original 10% tariff program. Trump quickly reinstated the 10% duties under a different law before raising them again to 15%. Trade Minister Don Farrell said Sunday he was working closely with Australia’s embassy in Washington to “assess the implications and examine all options.” He added, “Australia believes in free and fair trade. We have consistently advocated against these unjustified tariffs.” Farrell is set to travel to Los Angeles this week, where he is expected to meet senior U.S. officials. The new levies are scheduled to take effect at 5:00 PM GMT on Tuesday, 24 February.

Australia’s goods trade surplus widened to AUD 3.37 billion in December 2025, up from a downwardly revised AUD 2.60 billion in November and slightly above market expectations of AUD 3.3 billion, as exports grew while imports fell. Exports rose 1.0% month-on-month to AUD 44.63 billion in December, rebounding from an upwardly revised 4.0% drop in November, largely driven by metal ores and minerals. Shipments to China, Australia’s top trading partner, surged by 14.9%, rebounding sharply from a 1.5% drop in November. Exports also increased to the UK (13.9%), Japan (6.8%), South Korea (1.3%), India (0.5%), and the US (8.8%), despite the imposition of new tariffs. In contrast, imports fell 0.8% to a three-month low of AUD 41.26 billion, steeper than the previously downwardly revised 0.2% decline, amid weaker domestic demand, mainly weighed down by other merchandise goods.

Australia’s goods trade surplus narrowed to AUD 2.94 billion in November 2025, down from a downwardly revised AUD 4.35 billion in October and below market expectations of AUD 4.9 billion. It marked the smallest trade surplus since August, as exports fell while imports rose. Exports dropped 2.9% month-on-month to AUD 44.57 billion in November, following a downwardly revised 2.8% increase in October, largely weighed down by metal ores and minerals. Among trading partners, exports declined to South Korea (-9.4%), India (-41.5%), and Japan (-1.5%), while exports to the United States fell 10.5% due to the impact of newly imposed tariffs. Shipments to China, Australia’s top trading partner, also dropped by 0.5%. On the imports side, inbound shipments edged up 0.2% to a record AUD 41.64 billion, following an upwardly revised 2.4% rise in October, driven by processed industrial supplies n.e.s, highlighting resilient domestic demand ahead of the year-end holidays.