US President Donald Trump has unveiled a fresh wave of import tariffs that could send shockwaves through global retail supply chains, sparking cost increases and delivery disruptions that are set to flow through to Australian consumers.
On 2 April 2025, Trump announced sweeping new tariffs, including a standard 10% import duty for most nations, with Canada and Mexico being the notable exceptions. In a dramatic escalation, tariffs on Chinese imports have surged as high as 245%, and a 25% tariff is now in place on all imported vehicles.
Supply Chain Woes for Retailers
Retailers across the globe, including Australia, had been preparing for this possibility by building up stock. But it hasn’t been enough. Shipping delays and surging freight costs are putting pressure on operations. New port fees and the rerouting of cargo to avoid American tariffs have created chaos in international logistics. Air freight from China to the US, for example, jumped by over 7% in cost just before the tariffs hit, while ocean freight rates rose nearly 13%.
Shoppers to Bear the Brunt
The knock-on effect? Higher prices. Retail giants like Best Buy and Target in the US, as well as global suppliers like Conagra, have already warned of rising costs—costs they’ll be passing on to shoppers. The car industry is also bracing for impact, with manufacturers like Ford and Volkswagen flagging potential price hikes if the tariffs stay.
For Australian retailers that source stock or components from US or Chinese suppliers, or use US-linked logistics networks, the consequences could be significant. Consumers might soon notice everyday goods—from electronics to fashion—creeping up in price.
Secondhand Surge
Interestingly, the squeeze on new retail is giving a boost to the secondhand market. Thrift shops and online resale platforms are seeing a bump in activity as more consumers opt for cost-saving options. In the US alone, the resale market grew to $50 billion in 2024, and Australia has been following suit with its own boom in op shops and circular fashion trends.
Still, experts warn that if economic conditions worsen further, secondhand stock could also dwindle, as people cut back on purchases altogether.
Industry experts are urging businesses to future-proof their supply chains by going beyond just knowing their top-tier suppliers. Retailers should be mapping their supply chains in detail, stress-testing their operations under different scenarios, and considering more resilient strategies like nearshoring or reshoring.
Trump’s tariff strategy, while aimed at boosting American manufacturing, is having a broad and complex effect across global markets.
Retailers here must stay agile, informed, and ready to adapt if they’re to weather what could be a bumpy economic ride ahead.
Cejay is a Content Producer for Supply Chain Channel, Australia's learning ecosystem created to fill the need for information, networking, case studies and empowerment for everyone in the supply chain sector.
