Food industry and goverment repond to US tariff imposition

President Donald Trump announced during his Liberation Day speech (2 April) that the US will start imposing a 10% tariff on Australian imports from Saturday (5 April 2025). Although this was not unexpected and the Australian tariff is the minimum imposed in comparison to other countries, it will still cause some challenges for Australian food and beverage exporters, particularly for the beef industry.

Under the current free trade agreement with the US, Australia exports around AU$22bn worth of goods every year, which is around 4.1% of Australia’s total exports. The US is an important market for the beef industry, with nearly 400,000 tonnes of Aussie beef exported to the US in 2024. As can be seen by the graphic below, provided by the Australian Industry Group (Ai Group), total exports of processed primary food to the US is ranked the highest product by dollar value of Australian export exposure to the US tariff.

Click on the image to view larger version. Image credit: Ai Group

In this article, we hear from food industry representatives about the challenges ahead and how industry and government will respond to the US tariff imposition.

What this means for Australian red meat producers

Meat and Livestock Australia (MLA) firstly clarified that there is no ban on Australian exports of meat to the US. However, the US will impose a baseline 10% tariff on Australian beef, sheepmeat and goatmeat. While these tariffs present challenges, MLA said the Australian red meat industry is well prepared with a strong and diversified global trade network.

According to MLA:

• Australia continues to export record volumes of red meat, with significant demand across major markets, including China, Japan, Korea and the Middle East.
• MLA has been working closely with industry partners and the Australian Government to assess impacts and ensure our producers are well-equipped to navigate this change.
• MLA’s international markets team is actively assessing opportunities to further strengthen and expand access and exports in key export markets.
• While tariffs will impact pricing for American consumers, the US remains a key export destination. Given the US’s domestic supply constraints, Australian red meat will continue to play an important role in the US market.

MLA’s core focus remains on growing global demand for Australian red meat. Its international markets program supports improved access to global markets, works alongside commercial partners to expand opportunities, and promotes Australian red meat’s reputation as a safe, healthy and high-quality product, the MLA said.

“We understand that trade developments like this can create uncertainty; however, MLA is working closely with industry and government to safeguard the interests of Australian producers,” MLA said in a statement.

Australian fresh produce at risk

The International Fresh Produce Association Australia and New Zealand (IFPA ANZ), in collaboration with the International Fresh Produce Association, is urging the Trump Administration to exempt fresh produce from its new round of import tariffs.

Currently in the United States, IFPA Managing Director ANZ Belinda Wilson is working alongside global IFPA colleagues to advocate for an exemption and to support a coordinated response on behalf of the Australian and New Zealand industry.

“This is a pivotal moment for the fresh produce industry,” Wilson said.

“Tariffs on Australian and New Zealand fresh produce would restrict trade, limit access and increase food costs at a time when global food security is already under pressure.”

A formal letter from IFPA was submitted last week to US Secretary of Commerce Howard Lutnick, Secretary of Agriculture Brooke Rollins and US Trade Representative Jamieson Greer. It urged the Administration to exempt fresh produce and floral products, citing their perishable nature, contribution to public health, and the shared value of seasonal trade partnerships.

Wilson will meet with US stakeholders and Australian Embassy officials on 8 April to continue discussions and assess next steps in response to the tariff decision.

The implications of the new tariffs and the need for coordinated advocacy will be central themes at the IFPA ANZ Leadership Summit 2025 – Sydney: The Future of Fresh on 29 April.

“The tariff decision underscores the need for a united, strategic voice,” Wilson said.

Government and industry response

Ruling out retaliation measures, the Albanese government responded by saying that if re-elected it would introduce five measures to help export companies affected by the tariff. The measures will include: 

• strengthening the anti-dumping regime;
• $50m to help industries hit by the tariff to secure new markets for their products; 
• providing economic resilience with $1bn in zero interest loans to help Australian companies capitalise on export opportunities; 
• prioritising Australian-made procurement for government contracts;
• establishing a strategic reserve of critical minerals.

The government didn’t rule out trying to negotiate a return to Australia’s free trade agreement with the US.

Innes Willox, Chief Executive of Ai Group, said: “Goods destined for the US may likely need to find a new home, raising the prospect of an influx of displaced goods coming to Australia. More than ever, we need a transparent and robust anti-dumping system to work in the legitimate interests of Australian Industry.

“This also reinforces the need to get our policy house in order on issues like tax, deregulation and energy. We cannot hope to thrive in a trade war with policy settings that are internationally uncompetitive, overly complicated and not fit for purpose,” Willox said.

Image credit: iStock.com/Marko Jan