The recent 10 per cent tariff introduced on Australian imports into the United States has intensified pressure on Australian food and beverage exporters. With the US being Australia’s fourth-largest export destination for agrifood products, this change has prompted concern across the sector.
However, logistics experts say that while increased costs are front of mind, this is also an opportunity to build smarter, more resilient export strategies.
Brad Hansell and Gavin Farrell, directors of Cyclone Global Logistics, say exporters can use this moment to reframe how they approach global trade.
Diversifying Export Markets
The US is a high-value market, but Cyclone recommends a broader outlook. “Australia has Free Trade Agreements (FTA) with over a dozen countries, many of which offer stronger certainty and fewer barriers,” says Hansell.
In 2023, Japan remained one of Australia's most valuable trade partners, with food and beverage exports reaching $6.3 billion. South Korea followed closely behind, with beef exports alone valued at $1.89 billion, highlighting its position as a key high-value market. Both countries are supported by long-standing Free Trade Agreements, which continue to drive strong and stable demand for Australian products.
Meanwhile, markets such as Vietnam, Singapore, and the United Arab Emirates are also showing increasing appetite for high-quality, clean-label imports from Australia—particularly in health-oriented, premium, and sustainably positioned categories.
“The smart exporters are using this time to explore opportunities in these regions,” Hansell adds.
Logistics as a Strategic Lever
Beyond market choice, Cyclone is seeing exporters tighten their logistics to manage margin pressure.
“Freight costs can be influenced more than many businesses realise,” says Farrell. “We work with clients to improve efficiency by consolidating shipments, choosing alternate ports or even warehousing product closer to the buyer.”
This is a growing trend. According to Deloitte’s 2023 Supply Chain Trends report, 67 per cent of Australian exporters are re-evaluating their logistics and warehousing models post-COVID to improve cost control and service reliability.
Cyclone’s Asia-Pacific footprint allows exporters to access flexible trade routes, regional consolidation points, and real-time visibility tools to stay ahead of delays or cost blowouts.
Building Trust Through Reliability
In high-pressure environments, communication can make or break offshore relationships. Cyclone encourages exporters to over-communicate during times of uncertainty.
“Importers want to know that you’re managing the situation,” says Hansell. “They want honesty about delivery timelines, options when things change, and confidence that you can still deliver.”
Tapping Into Government Support
Australian exporters have access to world-leading government support through Austrade, Export Finance Australia, and state-based trade initiatives such as Global Victoria and Trade and Investment Queensland.
“Support is there, but it’s underutilised,” says Farrell. “Exporters should be leaning into trade advisory services, funding programs, and market-entry missions where available.”
Five Actions Exporters Can Take Now:
- Reduce market concentration by expanding into FTA-backed countries
- Conduct a freight strategy audit to find savings or efficiencies
- Strengthen communication with offshore buyers
- Engage trade organisations and government support programs
- Build relationships with logistics partners that offer flexibility and real-time data
Looking Ahead
While the new US tariff may bring near-term challenges, Hansell believes it’s a chance for exporters to step back and reset.
“Resilient exporters don’t just survive change—they grow through it,” he says. “With the right support network, market insights, and smarter logistics, Australian food and beverage businesses can come out of this better positioned than before.”
Cara Boatswain is a marketing strategist working with Cyclone Global Logistics. Cyclone is Australia’s first carbon-neutral freight forwarder and has supported FMCG, food, and beverage clients for over 21 years.
