Australian Auto Exporters Still Hit by 25% US Tariff Despite Trade Pause
The Australian Automotive Aftermarket Association (AAAA) acknowledges the recent announcement that the United States will pause reciprocal tariff increases on Chinese products, but warns that Australian automotive manufacturers remain caught in the crossfire of ongoing US trade measures.
While the US Administration has announced it will pause its planned 125% tariff on Chinese imports, the 25% tariff introduced under Section 301 trade measures remains in full effect for Australian-made automotive products exported to the United States.
“This pause may benefit some manufacturers using Chinese components, but it does nothing to address the ongoing damage to Australian automotive manufacturers who are still facing a 25% tariff on exports to the United States,” said Stuart Charity, CEO of the AAAA.
“Australian products are unfairly caught in a trade war that has nothing to do with us. We don’t compete with US carmakers. We are proud that the Australian aftermarket industry is known globally for its engineering excellence and innovation and that our components are high-quality, aftermarket upgrades designed for vehicles already on American roads. Our products, including suspension kits, performance components, towing accessories, and 4WD components are highly sought after in major export markets, including the United States.”
In recent weeks, the AAAA has stepped up its engagement on this issue, including a teleconference between AAAA CEO Stuart Charity and Bill Hanvey, President and CEO of the Auto Care Association in the United States. The Auto Care Association is the peak body representing America’s $500 billion auto care industry.
“Bill Hanvey has been very supportive of the Australian automotive aftermarket industry and shares our concern that these tariffs are placing unnecessary cost burdens on the supply chain, hurting American consumers, distributors, and aftermarket manufacturers alike,” said Charity.
The AAAA is continuing to work closely with government departments but is urging the recently re-elected Labor Government to step up diplomatic efforts to secure relief for Australian automotive exporters, who continue to face this significant and unfair barrier to trade.
“We understand that the caretaker period limited the Government’s ability to act. Now that the Albanese Government has been re-elected, resolving this issue should be a priority for Foreign Affairs Minister Penny Wong, Trade Minister Don Farrell, and Prime Minister Anthony Albanese,” said Charity.
“These tariffs are hurting local Australian businesses, many of them small and family-run, that have invested heavily in building export markets to the United States.”