The US has imposed 145% tariffs on Chinese goods and closed the de minimis loophole. If you're an Australian importer sourcing from China, here's why this matters — and exactly what you should be doing right now to protect your margins and supply chain.
Let's get the facts straight, because there's been a lot of noise.
Back in early 2025, the Trump administration introduced sweeping "reciprocal tariffs" targeting dozens of countries. In February 2026, the US Supreme Court struck down those reciprocal rates — but the White House responded almost immediately by introducing a blanket 10% global tariff on most imports into the US.
Separately, tariffs on Chinese-made goods have escalated to an effective rate of 145% across many categories, including electronics, industrial goods, and consumer products. That number is not a typo.
Then there's the de minimis exemption — the longstanding loophole that allowed goods valued under USD$800 to enter the US duty-free. That was suspended in August 2025 and permanently closed in February 2026. If you've ever shipped small parcels direct to US customers, that model is gone.
A further increase to a 15% global tariff has been flagged by the White House, though it had not taken effect as of early May 2026. And two new Section 301 investigations were launched in March 2026, targeting countries with alleged "excess manufacturing capacity" — a category that could eventually reach into Australia's trade relationships.
That's the macro picture. Now let's talk about what it actually means for your business.
Great question. If you're sourcing from China or Vietnam to sell in Australia — not to the US — is this really your problem?
Short answer: yes. Here's why.
Chinese factories that were heavily reliant on US export orders are pivoting hard. Some are actively seeking new buyers in alternative markets — including Australia. In the short term, this can mean better pricing and more flexibility on MOQs. But it can also mean factories are overstretched, quality control slips, and lead times blow out as they juggle a flood of new relationships.
When major US-China trade routes are disrupted, shipping container flows change. Vessels get repositioned. Port congestion eases on some lanes and worsens on others. According to our 2026 freight cost guide for Australian importers, this is proving to be one of the most volatile years for logistics since the pandemic — and tariff-driven trade uncertainty is a key driver.
Some of the savvier Australian importers are already responding. They're diversifying their supplier base, locking in longer-term contracts, and exploring Vietnam and other markets for supply chain resilience. If you're standing still, you may find yourself at a cost disadvantage within 12 months.
With tariffs on Chinese goods at 145% into the US, many Chinese manufacturers are redirecting excess inventory toward other markets — including Australia. That sounds like a bargain, but it also compresses margins for importers who've invested in differentiated product lines. If your competitor is buying distressed stock at 20% below your cost, your pricing strategy needs a rethink.
The US Section 301 investigations now in progress are focused on countries with "excess manufacturing capacity" and on whether trading partners are adequately enforcing laws against goods made with forced labour. Results are expected by mid-2026. While Australia isn't a primary target, if these investigations affect key trading relationships, Australian importers could feel the ripple effects in supplier behaviour, documentation requirements, and trade flows.
One of the clearest strategic responses to the current tariff environment is the "China-Plus-One" strategy — and Australian businesses are increasingly adopting it.
The concept is straightforward: keep China as a core sourcing market (it's still unmatched for breadth, scale, and price), but develop a secondary supplier relationship in another country to reduce concentration risk.
Vietnam is the standout winner here. Over the past two years, Vietnam has emerged as a serious manufacturing alternative for Australian importers — particularly in furniture, apparel, electronics accessories, homewares, and outdoor products. Manufacturing costs in Vietnam typically run 25–35% lower than equivalent Chinese factories in many categories, and the country benefits from strong trade agreements with Australia under AANZFTA and CPTPP. Under AANZFTA, approximately 90% of Vietnamese goods enter Australia at 0% customs duty.
For a comprehensive look at what this means in practice, our Vietnam Sourcing service page breaks down exactly what Epic can facilitate — from factory sourcing and vetting through to quality control and shipping.
Let's get practical. Here are the moves worth making in the current environment.
Do you know exactly where your products are made — not just the country, but the province, the factory type, and that factory's export history? In this tariff environment, country of origin matters more than ever. If your supplier has shifted production, if components are sourced from multiple countries, or if there's any ambiguity in origin documentation, you need to know now — before your customs broker or a buyer flags it.
With freight rates still fluctuating, it's worth going back to basics. Our guide to shipping from China to Australia covers every component of landed cost — FOB price, CIF, insurance, customs duty, GST, port fees, and last-mile delivery. If your margins have been squeezed lately and you're not sure why, the answer is often buried in the logistics stack.
Chinese factories are under significant pressure right now. Some are losing major US clients overnight. Others are proactively looking for new loyal buyers. This creates genuine negotiating leverage for Australian importers — on price, MOQ, payment terms, and lead times. If you haven't had a frank conversation with your supplier about the current landscape, now is the time.
Yes, it's more work upfront. Yes, managing two supplier relationships is more complex than one. But the risk management benefits — from a tariff exposure perspective and a production continuity perspective — are real and measurable. If you want expert help finding and vetting alternative suppliers in Vietnam or elsewhere, our OutSource service is built exactly for this.
The situation is still evolving. The 15% global tariff hasn't landed yet. Section 301 investigations are ongoing. Our recent blog on the EU-Australia Free Trade Agreement explores another dimension of the shifting trade picture — a deal that could open new sourcing and export pathways for Australian businesses. Stay informed, talk to your customs broker regularly, and follow DFAT updates.
Here's what I've noticed across the hundreds of Aussie businesses we work with at Epic Sourcing: disruption consistently creates opportunity for the well-prepared.
Chinese factories are actively seeking new long-term customers. Freight rates on certain lanes are more competitive than they've been in years. Australian importers who move decisively now — locking in strong supplier relationships, diversifying their sourcing base, and building genuine supply chain resilience — will be in a far stronger position in 12 months than those who wait and see.
This isn't about panicking. It's about recognising that the global trade environment has structurally shifted, and building your sourcing strategy around that new reality.
Want to make sure your sourcing strategy is built for the current trade environment? Our team at Epic Sourcing works with Australian businesses every day to navigate exactly this kind of complexity — from supplier diversification and factory vetting to ongoing supply chain management.
Get in touch with the Epic team today or check out our complete guide to importing from China to Australia to sharpen your sourcing fundamentals.
Never miss an industry update — subscribe to the Epic Sourcing newsletter for up-to-date expert guides and sourcing insights delivered to your inbox.
