Trade wars and tariffs: what it could mean for Aussie tradies

In early February 2025, global Google searches for “tariffs” jumped over 900%.

It’s not something most tradies think about day-to-day, but when major economies start slapping taxes on imports, it can quietly drive up the cost of materials, tools, and parts here in Australia.

Here’s what’s going on, and why it matters for your business.

What are tariffs, and who pays them?

A tariff is a tax on imported goods. Governments use them to make overseas products more expensive and protect local industries.

The problem? It’s not foreign suppliers who pay; it’s local importers, wholesalers, and small businesses.

When President Trump first introduced 25% tariffs on steel and 10% on aluminium, global prices rose even in countries like Australia that negotiated exemptions. For trade businesses, those cost increases can quietly eat into profit margins on every job.

The return of US tariffs

Within weeks of returning to the office, President Trump announced a new round of tariffs:

• Canada: 25% on most imports (10% on energy)

• Mexico: 25% on imports

• China: 20% on imports, with China retaliating on US agricultural goods and key minerals

He’s also launched investigations into steel, copper, and timber imports, industries closely tied to construction and maintenance.

Australia isn’t directly targeted, but when global trade tightens, we feel it.

How it impacts Aussie tradies

Even though the US is half a world away, trade wars ripple through global supply chains, and they can hit local businesses in a few key ways:

1. Material prices creep up

If the cost of steel, copper, or timber rises internationally, those increases flow through to Australian distributors. The result? Supplier prices jump, often with little notice.

2. Delays and shortages

Tariffs and investigations slow down shipping and production. Lead times stretch, and project timelines feel the squeeze.

3. Currency and confidence drop

When major economies clash, markets get nervous. Exchange rates shift, imports cost more, and business confidence dips.

4. More competition in local markets

When export doors close elsewhere, overseas suppliers start looking for new customers. That can mean cheap imports in the short term, and price instability long term.

What you can do

You can’t control global trade policy, but you can control how prepared your business is.

1. Watch your costs.

Track material price changes and review supplier invoices regularly.

2. Update your quoting.

Make sure your prices reflect current costs, not last year’s.

3. Strengthen cash flow.

Keep a financial buffer for price spikes or delays.

4. Stay on top of BAS and tax.

If costs rise but you don’t adjust your prices, you’ll still owe the same BAS and tax, and that can catch you out.

5. Get advice early.

Talking to an accountant before you hit a cash crunch can make all the difference.

Bottom line

Trade wars might sound like big-picture politics, but they can filter right down to your supplier shelves and cash flow.

At AccNav, we help tradies and maintenance business owners understand their numbers, build profit, and stay steady, no matter what’s happening overseas. Need a hand tightening up your finances before things change again? Take a look at our Small Business Foundations Course.