Trade · July–August 2026

Australian small businesses importing from China face higher landed costs now

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Keep an eye on it

Directly material for Australian importers who source from China. The new US Section 301 tariffs, combined with the existing 15 percent global tariff, have pushed Chinese manufacturers to discount aggressively into non-US markets — which can help buyers but disrupts local producers competing with imported goods.

In a nutshell: The USTR’s new 12.5 percent Section 301 tariff on Chinese goods effective 24 July 2026, combined with a 15 percent global tariff in effect since February, has reduced US-bound Chinese export flows by roughly 30 percent. McKinsey analysis finds Chinese exporters of consumer goods have cut prices by an average of 8 percent to find buyers in non-US markets, including Australia. For Australian importers, this creates a short-term opportunity for lower-priced Chinese supply but also competitive pressure on domestic manufacturers. Suppliers in some categories may be willing to renegotiate pricing.

Spin Unspin

What they’re saying

For Australian importers this is a potential cost saving; for Australian manufacturers competing with Chinese-made goods, the same price drop is a competitive threat that rarely makes headlines.

Australia is not in ASEAN’s position of gaining as a trade intermediary; it is primarily exposed as an import destination for diverted Chinese goods, a nuance lost in most tariff coverage.

USTR tariff confirmed by primary source. McKinsey trade deflection figures are estimates with reasonable methodology. Australian import price impact is an inference from trade diversion data, not directly measured.

US-China Tariff Rates - What Are They Now?

Geopolitics and the geometry of global trade: 2026 update

Do I care?

Chinese manufacturers are under price pressure to find non-US buyers. You have more negotiating leverage now than at any point in the past five years. Get quotes.

If you import from China, now is a reasonable time to renegotiate pricing with your supplier.

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