Update: U.S. Steel & Aluminium Tariffs
Effective 4 June, the U.S. has increased tariffs on aluminium and steel imports from 25% to 50%. These updated tariffs now apply only to the actual metal content (as defined under Chapters 73 and 76 of the Harmonized Tariff Schedule), rather than the full value of the imported product.
Following this change, CBP has amended the list of impacted tariff codes—some items have now been excluded. Importers should review their supply chains to assess any impact.
Australia–UK Free Trade Agreement: Progress Update
Australian and UK trade officials met in Paris on 3 June 2025 for the second Joint Committee meeting under the Australia–UK Free Trade Agreement (A-UKFTA). The ministers celebrated the growing trade and investment relationship, with two-way trade reaching AUD36 billion in 2024.
Foreign Direct Investment continues to grow, with UK investment in Australia hitting AUD156 billion and Australian investment in the UK reaching AUD210 billion—both posting strong year-on-year growth.
Since the agreement came into force in May 2023:
• Around 70% of traded goods have taken advantage of tariff preferences
• AUD3.4bn of UK goods into Australia (65%) used preferential access
• GBP662m of Australian goods into the UK (77%) used preferential access
These benefits are translating into significant duty savings for businesses in both countries.
The Joint Committee also discussed:
• Progress in mutual recognition of professional qualifications
• Innovation collaboration through a proposed ‘biobridge’ to accelerate access to new health technologies
• Ongoing commitment to a strong, rules-based trading system, with cooperation via the WTO, OECD, and CPTPP
Australia–China Red Meat Access Expands
Seventeen Australian meat processing facilities have received new or expanded approvals to export chilled and frozen sheep, lamb, and goat meat to China—an encouraging sign for Australia’s red meat export industry.
In a parallel development, China has lifted the last remaining suspensions on two Australian beef facilities, supporting a strong rebound in beef exports. With U.S. exports declining, Australian grain-fed beef is increasingly filling the gap in Chinese demand.
However, rising volumes may soon trigger China’s 2025 Safeguard Mechanism. If the volume threshold is exceeded, a 12% MFN tariff will apply—potentially as early as July or August.
CBP Warns of Tariff Workaround Schemes
The U.S. Customs and Border Protection (CBP) Office of Trade has issued a caution for importers—especially small business operators—about illegal tariff avoidance schemes being marketed as “shortcuts” or workarounds.
One example involves routing goods manufactured in China through third countries to disguise their origin and take advantage of lower tariffs. This is known as illegal transshipment, and it’s a serious offence. Importers—not the overseas suppliers—bear the legal and financial consequences.
The risks include:
• Seizure of goods
• Criminal liability
• Business disruptions
• Heavy fines
• Revocation of import privileges
US–UK Economic Prosperity Deal Nears Completion
The United States and United Kingdom are finalising parts of a trade deal that will lower tariffs on UK vehicle exports in exchange for better U.S. access to the UK beef and ethanol markets.
Negotiations are continuing around steel, where the UK is seeking zero-tariff access for its exporters to the U.S. market. Updates are expected in the coming weeks.
U.S.–China Tariff Agreement
In a welcome move to ease trade tensions, the U.S. and China have reached a new agreement reducing previously proposed tariff hikes. Instead of the initially planned 145% on Chinese goods and 125% on U.S. exports, the new agreed rates are 30% and 10%, respectively.
The deal includes the removal of Chinese restrictions on the export of rare earth minerals—essential for industries such as defence, clean energy, electronics, and advanced manufacturing.
