Australia Tariff Rates 2026: 10% on US Imports

Australia retains one of the most favorable tariff positions among all US trading partners. The 10% rate continues under Section 122 authority after the SCOTUS ruling (unchanged from the IEEPA floor rate), but AUSFTA covers the vast majority of goods at zero duty, and Australia is uniquely exempt from Section 232 steel and aluminum tariffs. US imports from Australia total approximately $15B annually.

The Australia-US Free Trade Agreement (AUSFTA) has been in effect since 2005 and covers the vast majority of bilateral trade. Australia is one of only a handful of countries exempt from Section 232 steel and aluminum tariffs — a distinction that became even more valuable after the SCOTUS ruling left Section 232 intact for all other countries. Annual US imports from Australia total approximately $15B. The alliance-based trade relationship is further supported by the AUKUS security pact and shared membership in the Quad.

Key Products Imported from Australia

Top imports include beef and lamb, wine, aluminum and steel (exempt from Section 232), pharmaceuticals, machinery, opals, and critical minerals (lithium, rare earths, cobalt). Australia is a major supplier of high-quality grass-fed beef and an emerging critical minerals powerhouse with significant lithium and rare earth reserves essential for EV and defense supply chains.

Recent Changes

Feb 20, 2026: SCOTUS struck down IEEPA tariffs 6-3 — Australia's effective rate is unchanged at 10% Section 122 (effective Feb 24; scheduled to sunset ~July 24, 2026), since Australia was already at the 10% IEEPA floor. AUSFTA continues to cover most goods at zero duty. Critically, Australia's Section 232 steel and aluminum exemption remains in place — unique among major US trading partners. The US-Australia Critical Minerals Agreement continues facilitating trade in EV battery materials including lithium and rare earths.

Tips for Importers

AUSFTA provides zero-duty treatment on nearly all qualifying goods — ensure you have proper certificates of origin to avoid the 10% Section 122 tariff. Australia's Section 232 exemption is a unique competitive advantage: Australian steel and aluminum enter without the 50% surcharge that every other major supplier faces on metal articles (a 25% tier applies only to derivative products after the April 6, 2026 restructuring). For beef, AUSFTA provides tariff-rate quotas with preferential access — monitor quota utilization levels as beef TRQs can fill before year-end. Explore Australia as a strategic source for critical minerals (lithium, rare earths) under favorable trade terms and the Critical Minerals Agreement. The Section 122 tariff is scheduled to sunset ~July 24, 2026, but AUSFTA qualification provides permanent tariff certainty regardless of what Congress does.