Summary
The US 10% Section 122 temporary tariff on most Australian exports expires today, 24 July 2026 — but Australia now faces a proposed new 12.5% tariff under Section 301 (forced labour investigation), with no confirmed start date; the situation remains fluid and uncertain. The implications of these changes could significantly affect the dynamics of US tariffs Australia 2026.
The AUD has been under pressure throughout the US tariff period — a weaker AUD means fewer US dollars for Australians sending money to the USA; conversely, it means more AUD for Australians receiving money from the US, or for migrants in the USA sending money home to Australia
Australia’s steel and aluminium retain a significant competitive advantage — Australian steel and aluminium are exempt from the 50% US metal surcharges that apply to most other major suppliers, a benefit of the Australia-US Free Trade Agreement (AUSFTA)
It has been a turbulent 15 months for trade between Australia and the United States. What started as a blanket “Liberation Day” tariff in April 2025 has since been struck down by the US Supreme Court, reinstated under a different legal authority, and now transitions again — with today, 24 July 2026, marking the expiry of the current 10% Section 122 temporary import surcharge.
What replaces it is still being determined. Here is the full picture.
What happened — a timeline
April 2025: President Trump announced “Liberation Day” reciprocal tariffs on imports from most countries. Most Australian-originating goods were subject to a 10% baseline tariff, effective from 5 April 2025.
February 2026: The US Supreme Court struck down the Trump administration’s IEEPA-based tariff authority in a 6-3 ruling. Within 24 hours, the White House reinstated a 10% tariff under Section 122 of the Trade Act 1974 — a different legal authority. Trump temporarily raised this to 15% before settling at 10%.
March 2026: Australian Trade Minister Don Farrell said Australia would “examine all options” and travelled to Los Angeles to meet US officials. Australia maintained that the tariffs were “unjustified.”
June 2026: The US proposed a new 12.5% tariff on Australian exports under Section 301 of the Trade Act 1974, citing its forced labour investigation. The Australian Government made submissions challenging the proposed tariffs. The US has not confirmed when or whether this tariff will take effect.
Today, 24 July 2026: The 10% Section 122 temporary import surcharge expires. Australia Post confirmed tariffs will now be assessed on a per-HS Code and Country of Origin basis — meaning different goods will face different duty rates depending on their product category and origin certification. Goods qualifying under the Australia-US Free Trade Agreement (AUSFTA) may enter with reduced or zero base duty.
July 2026 (ongoing): Two separate US investigations into Australian exports are expected to conclude in July 2026. Any resulting Section 301 tariff measures could be announced at any time. Australia faces potential tariffs under both the forced labour investigation (proposed 12.5%) and a separate excess manufacturing capacity investigation.
What is still subject to tariffs
The USD $800 de minimis exemption remains suspended indefinitely. Previously, goods valued under USD $800 sent from Australia to the USA were exempt from import duties. That exemption was suspended in August 2025 and has not been reinstated. This affects Australian businesses and individuals shipping goods to the US.
Aircraft and jet engines remain under separate Section 232 investigation and are currently exempt from the surcharge.
Australian steel and aluminium retain their AUSFTA advantage — exempt from the 50% metal surcharges applied to most other major suppliers.
What it means for the AUD/USD exchange rate
Trade tariffs affect exchange rates indirectly — by changing trade flows, economic growth expectations and investor confidence.
The sustained period of US tariff uncertainty since April 2025 has contributed to AUD volatility. A weaker Australian economy (from reduced export revenue) and global risk-off sentiment both weigh on the AUD.
For Australians sending money to the USA: A weaker AUD means your dollars buy fewer US dollars. If you need to send USD regularly — for university fees, a mortgage, supporting family in the US — timing your transfers during AUD strength is valuable. OrbitRemit’s rate alerts let you set a target AUD/USD rate and receive a push notification when it is hit.
For people in the USA sending money to Australia: A weaker AUD is good news — your USD buys more Australian dollars per transfer.
What to watch: The expiry of the Section 122 tariff today, and the outcome of the Section 301 investigations expected imminently, are the two most important near-term factors for AUD/USD direction.
What the proposed 12.5% Section 301 tariff would mean
If the US proceeds with the proposed 12.5% forced labour tariff on Australian exports:
- Australian beef, agricultural products and manufactured goods would face higher costs entering the US market
- Australian exporters would lose competitiveness relative to Section 301-exempt countries
- The AUD could weaken further if Australian export revenue is affected
- The RBA may factor worsening trade conditions into its August 11 rate decision
The Australian Government has made formal submissions opposing the tariff, arguing Australia’s record on forced labour compliance. The US has not signalled a timeline.
What Australian businesses sending to the USA need to know
If you send goods from Australia to the USA:
- The 10% flat Section 122 tariff expires today (24 July 2026)
- From today, duties are assessed per HS Code and Country of Origin — check your specific product category
- Ensure you have valid certificates of origin to claim AUSFTA preferential rates where applicable
- The USD $800 de minimis exemption remains suspended — all shipments are subject to duty assessment
- Monitor the Office of the United States Trade Representative (USTR) for Section 301 announcements
- Australia Post has confirmed these changes apply to business customers shipping from Australia
Key upcoming dates
| Date | Event |
|---|---|
| 24 July 2026 (today) | 10% Section 122 tariff expires; per-HS Code duty rates apply |
| July 2026 (imminent) | US Section 301 investigations conclude; tariff announcement possible at any time |
| 30 July 2026 | Australia Q2 CPI — key input to RBA August 11 decision |
| 11 August 2026 | RBA rate decision — trade conditions a factor |
Sending money between Australia and the USA
Whether you are sending AUD to USD or USD to AUD, OrbitRemit supports transfers in both directions with a flat fee and no exchange rate markup.
- AUD to USD: AUD $4 flat fee (fee-free above AUD $10,000)
- NZD to USD: NZD $4 flat fee (fee-free above NZD $10,000)
- Rate locked at confirmation — no weekend surcharges, no hidden margin
- Use rate alerts to time your transfer when AUD/USD is at your target
- Regulated by ASIC in Australia (AFSL: 470646)
FAQ’s (frequently asked questions)
What US tariffs apply to Australian exports today?
As of 24 July 2026, the 10% Section 122 temporary import surcharge expires. Duties are now assessed per HS Code and Country of Origin. Goods qualifying under AUSFTA may enter with reduced or zero duty. A separate 12.5% forced labour tariff (Section 301) has been proposed but not yet confirmed or implemented.
Were the original Trump tariffs on Australia struck down?
Yes. The US Supreme Court struck down the IEEPA-based tariffs in a 6-3 ruling on 20 February 2026. The White House promptly reinstated a 10% tariff under Section 122 — a different legal authority — which applied until today.
Does Australia have a trade deal with the USA?
Yes. The Australia-United States Free Trade Agreement (AUSFTA), in force since 2005, provides zero or reduced duty rates on most qualifying Australian goods. Australian exporters need valid certificates of origin to claim these rates.
Are Australian steel and aluminium affected by US tariffs?
Australian steel and aluminium are exempt from the 50% US metal surcharges that apply to most other major suppliers — a significant competitive advantage under AUSFTA. A 25% tariff applies only to derivative products after the April 2026 restructuring.
What happened to the USD $800 de minimis exemption?
It was suspended in August 2025 and remains suspended indefinitely. All shipments from Australia to the USA are now subject to duty assessment regardless of value.
How do US tariffs affect the AUD/USD exchange rate?
US tariffs on Australian exports reduce Australian export revenue, which can weigh on the AUD. A weaker AUD means Australians get fewer USD per dollar when sending money to the US, but those in the US sending money to Australia receive more AUD per transfer.
This article is based on publicly available information as of 24 July 2026. The US tariff situation is rapidly evolving — always verify current requirements at dfat.gov.au, ustr.gov and the Australia Post disruptions page before shipping goods to the USA. Exchange rates fluctuate — check current rates at orbitremit.com before transferring. Last updated 24 July 2026.
Sources: K&L Gates — How US Tariffs are Impacting Australia’s Tourism and Aviation Industry (21 July 2026) | United States Studies Centre — One year after Liberation Day (7 April 2026) | Australia Post — US import tariff changes (auspost.com.au) | TariffsAustralia.com (14 June 2026) | TradingEconomics — Australia Weighs Response (23 February 2026) | DFAT — Latest US Tariffs (dfat.gov.au)
