Regional NSW, businesses selling direct to the US and those trading with China are set to be hardest hit by this morning’s announcement by US President Donald Trump of a 10% tariff on all Australian exports.

The peak body for business in Australia’s biggest and most economically important state says this move will impact NSW businesses, who trade with many Asian countries that have been slapped with much higher tariffs than Australia.

“While some NSW businesses engage directly with the US market, the ripple effects will extend throughout the entire business community. The uncertainty alone is enough to cause widespread concern,” Business NSW CEO Daniel Hunter said.

“The indirect effects of tariffs imposed on Australia's key trading partners, such as China, are likely to reverberate back to NSW businesses, amplifying the challenges faced.

“Regional NSW will also be the hit hard. Regional exporters are already operating on tight margins. Any increase on tariffs will mean that producers will need to rework their business models.”

The US accounts for 5.6% of NSW’s exports (or $4.85 billion), compared to 14.2% to China and 23.23% to Japan, according to DFAT.  More than a quarter (27.3%) of NSW imports come from China, while 10.7% come from the US.

This heavy reliance on the Chinese market, which is facing significantly higher tariffs than the 10% imposed on Australia, underscores the interconnectedness of global trade and the potential for cascading effects on NSW businesses.

"Even businesses not directly exporting to the US will feel the strain through disrupted supply chains and increased operational costs,” Mr Hunter said.

“The need to reassess supply chain management and explore alternative export markets is now more critical than ever.

“The strength of the US dollar may offer some cushion, as Australian goods remain attractively priced for American buyers.”

Mr Hunter concluded with a call to action:

"While the immediate outlook is challenging, there is an opportunity for NSW businesses to diversify and strengthen trade relations with other countries. Business NSW is committed to supporting our members through this period of uncertainty, providing resources and guidance to navigate these 
turbulent times."

Business NSW offers a range of trade services to assist businesses in adapting to the evolving global trade landscape. We will continue to work closely with our members to identify new opportunities and mitigate the impacts of these recent developments.

About Business NSW

Formerly the NSW Business Chamber, Business NSW is the peak policy and advocacy body which has been representing businesses in NSW since 1826. We represent almost 50,000 businesses.

MEDIA CONTACT: BEN PIKE – 0429 993 822