U.S.A tariffs to hit Victorian businesses

The Victorian Chamber of Commerce and Industry

The Victorian Chamber of Commerce and Industry is warning of significant consequences for Victorian exporters, particularly in agriculture, food production and manufacturing, following the announcement that the United States will introduce a 10 per cent tariff on all Australian goods.

Victoria is Australia’s largest food and fibre exporter, accounting for 24 per cent of the national total in 2022-23. The U.S. is a key market for Victorian beef, sheep meat, wool, fresh produce and specialised equipment, with beef exports alone valued at $534 million last financial year. A tariff of this magnitude threatens to erode the competitiveness of Victorian products in the U.S. market, potentially impacting local businesses, supply chains and jobs.

The Victorian Chamber continues to advocate for a renewed focus on diversifying export markets.

To be attributed to Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra:

“This is a significant hit to Australia, and particularly Victoria, given that our state accounts for 24 per cent of the nation’s food and fibre exports. If the United States reduces its intake of Victorian goods, it will have a major impact on local producers, supply chains and jobs. It will also drive costs up for American consumers who have long relied on Australia’s high-quality, safe and sustainably produced food. These tariffs put Victorian businesses at a disadvantage and risk weakening vital trade ties between our two nations.

“Broader implications are that this could push other heavily impacted countries to redirect their goods into our existing markets, intensifying competition for Victorian exporters. There is a cascading effect that goes beyond just the U.S.-Australia trade.

“Victoria is in a strong position globally, with 24 trade commissioners based in key international markets. The State Government must now activate these networks to shore up Victorian export markets and ensure our businesses have strong alternatives.

“At the same time, the Federal Government must continue diplomatic efforts with the U.S. to push for these tariffs to be overturned, delayed or reduced. Every effort must be made to ensure Victorian businesses can continue exporting to the U.S. at the volume they have been.

“The immediate impact on Australian consumers may be limited, but if our exports start to decline, we could see job losses and broader economic consequences. This is why we must act quickly, both to maintain our U.S. trade, and aggressively pursue new opportunities in global markets. Victoria produces some of the highest-quality, safest and most sustainable food in the world, and we must continue to promote and expand that reputation internationally.”

Mikkayla Mossop, [email protected], 0423 883 945