2 weeks Ago By David Richards
Australian retailers could benefit from the introduction of tariffs especially if US consumers go hunting for lower priced products on overseas web sites as US consumers face massive price hikes for goods. US Treasury Secretary Scott Bessent confirmed to Bloomberg News that goods brought in from China would now face an effective tariff rate of 54% — the sum of its newly imposed 34% rate plus the 20% rate Trump had already instituted in his new administration. Take for example a Hisense or TCL appliance or a TV or Lenovo notebook or Motorola smartphone all products that are manufactured in China, which when shipped to Australia is not impacted by Tariffs.
For retailers, the opportunity could be the sale of tariff affected goods going into the US market via an Australian web site where the price could be significantly lower. Where there is a lack of clarity, is whether items shipped direct to consumers in the USA from an Australian web site, where Country of Origin for the goods has to be identified for US customs, have to be labelled Australia or China. Observers who ChannelNews has spoken to today believe that there could be a big benefit emerging for retailers, especially those who are structured to deliver goods internationally.
In a background call before Trump’s speech, a senior White House official told reporters that the president would impose “baseline tariffs” on all countries. Australia has come out among the least affected along with the UK and Australia among a small list of Countries that will be hit with 10% tariffs. The base rate Countries include: United Kingdom Singapore Brazil Australia New Zealand Turkey Colombia Argentina El Salvador United Arab Emirates Saudi Arabia Countries set to be hit include: European Union: 20% China: 34% Vietnam: 46% Thailand: 36% Japan: 24% Cambodia: 49% South Africa: 30% Taiwan: 32% Some observers believe that if this happens and consumers start buying from overseas web sites Vs US sites the benefit to retailers who are in low tariff Countries could benefit “To the tune of hundreds of millions”.
Lori Wallach, director of Rethink Trade, an advocacy group within the American Economic Liberties Project, a think tank, said in a statement following Trump’s tariffs rollout that he “must take immediate action to stop corporations from using the pretext of these tariffs to price-gouge” consumers. Australian Prime Minister Anthony Albanese has slammed the new tariffs announced by the US Trump administration, but he has not explained why he has had to bring in a former Australian sports hero Greg Norman to negotiate with the US Government on his Governments behalf. Albanese has ruled out applying reciprocal measures and announcing a suite of actions to safeguard industry against a more difficult global trading environment.
At this stage it appears that the Australian CE industry could be in a position to benefit if US consumers start buying goods from Australian online sites where certain goods could be over 40% cheaper when purchased via an Australian retail site. Treasury Secretary Scott Bessent warned countries hit by Trump’s new tariffs not to retaliate. “I wouldn’t try to retaliate,” Bessent said in an interview this evening with Bloomberg Television.
“As long as you don’t retaliate, this is the high end of the number.” He repeated that sentiment on Fox News, saying any retaliation would result in heightened tariffs from the U.S.
“Do not retaliate,” he said. “If you retaliate, there will be escalation. We are currently awaiting answers from several Chinese suppliers into Australia spanning consumer electronics and appliances, Australia Post and The Australian Retailer Association.
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