Australia Trade Surplus Below Estimates

Australia’s goods trade surplus widened to AUD 5.69 billion in February 2026 from a downwardly revised AUD 2.26 billion in the previous month, above market expectations of an AUD 2.6 billion surplus. It marked the largest trade surplus since July 2025, as exports grew while imports fell. Exports rose 4.9% month-on-month to a four-month high of AUD 45.65 billion, recovering from an upwardly revised 1.6% fall in the previous month. Shipment growth was mainly supported by rural exports, which rose 13.9% to AUD 7.35 billion, with sharp increases in meat and meat preparations (26.8%). Meanwhile, imports dropped 3.2% to a seven-month low of AUD 39.96 billion, reversing an upwardly revised 1.0% gain in January, amid weaker domestic demand and uncertainty in global trade flows due to geopolitical tensions.

Australia’s goods trade surplus fell to AUD 2.63 billion in January 2026 from AUD 3.37 billion in the previous month, missing market expectations of a AUD 3.9 billion surplus. The weaker outcome was driven by softer exports and a rebound in imports. Sales slipped 0.9% month-on-month to a five-month low of AUD 44.06 billion, reversing a marginally revised 0.9% rise in December. The decline was largely weighed down by lower shipments of other rural goods, likely reflecting seasonal factors and weker global demand. Meanwhile, imports rose 0.8% to AUD 41.43 billion, recovering from a revised 1.8% drop in the prior month. The increase suggests firmer domestic demand and restocking activity at the start of the year, contributing to the narrower trade surplus.

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.