The United States has officially imposed a new 10% tariff on all Australian goods exported to the US. Despite our long-standing free trade agreement, this “baseline” tariff is part of President Trump’s sweeping new trade policy—what he’s calling “reciprocal tariffs.”
For those in the hospitality sector, this development might seem distant at first—but it could have real implications for operations, costs and supply chains. Here’s what Australian hoteliers need to know.
Why Is This Happening?
The White House claims Australia charges 10% tariffs on American goods—despite the fact that, under the 2005 Australia–US Free Trade Agreement (AUSFTA), we don’t.
Prime Minister Anthony Albanese has called out the tariff as misleading, stating that if the US were genuinely applying a reciprocal rate, it would be zero, not ten.
So what’s really behind it? Likely a combination of non-tariff grievances: biosecurity barriers, such as bans on American beef (due to longstanding concerns over mad cow disease), restrictions on uncooked pork and poultry, and complaints about Australia’s digital and pharmaceutical regulations.
What It Means for Hotels in Australia
The tariffs themselves are aimed at exporters, but the broader economic effects can filter through to the accommodation industry in a number of ways:
1. Supply Costs May Rise
If your hotel sources US-made items—be it wine, electronics, appliances, or guest amenities—expect prices to rise. Even if you don’t buy directly, your suppliers might, and those costs can end up in your budget.
2. Delays or Disruption in Global Trade
Any escalation in global trade tensions tends to unsettle markets and shipping logistics. You may face longer lead times or stock shortages on imported goods.
3. International Travel Trends Could Shift
While the US is not Australia’s largest source of inbound tourism, any global economic instability or retaliatory tariffs could disrupt international travel flows and shift guest behaviours—especially for properties reliant on long-haul tourists.
4. Pressure on Local Exporters and Jobs
Australia exports billions in beef, wine, and other goods to the US. If these sectors are impacted, there may be downstream effects on local economies, jobs, and consumer spending—potentially tightening budgets for domestic travel and holiday spending.
Why It’s Still Manageable
Despite the frustration, this is not the worst-case scenario. Australia avoided a harsher rate and has historically taken a calm, cooperative approach to trade disputes.
Some other countries were hit with tariffs as high as 49%, and a number of Trump’s claims—such as the 10% rate Australia supposedly charges—don’t stack up under scrutiny. As Monash Business School’s Dr Nicola Charwat put it, “Trump or the United States can redefine any trade policy difference as unfairness and reach for tariffs.” In other words, this may be more about politics than actual policy.
How Aussie Hoteliers Can Respond
In uncertain times, agility is key. Even if the tariffs don’t affect your business directly, being proactive about where and how you source supplies can help you stay ahead.
Using Preno’s hotel management software can also help you maintain control over key parts of your business, so you’re in a stronger position no matter what happens globally. With Preno, you can:
- Track performance and revenue in real time
- Adjust pricing based on market shifts
- Streamline bookings and operations
- Save time on manual admin tasks
Whether you run a vineyard retreat in the Barossa or a boutique stay in Byron, Preno helps Australian hoteliers stay focused on their guests—even when global trade throws up surprises.
Stay informed. Stay flexible. And trust that with the right tools, you can weather any change.
