Navigating new opportunities amid global trade shifts
Recent developments in international trade have significantly impacted global markets, particularly affecting the Australian economy. The introduction of substantial tariffs by United States President Donald Trump has triggered a series of economic adjustments, notably influencing the Australian dollar and presenting unique opportunities for your international business if you are considering expansion into Australia.
By Ro Elvinia
Impact of US tariffs on the Australian dollar
In early April 2025, the Australian dollar experienced a sharp decline, falling below 60 US cents for the first time since the COVID-19 pandemic and marking its largest daily drop in 17 years. This depreciation is largely attributed to the US administration’s implementation of significant tariffs on imports from various countries, including Australia. These include a 25% tariff on Australian steel and a 10% tariff on other goods, fuelling fears of a global economic slowdown and leading to widespread market sell-offs.
Australia, notably, is not planning retaliatory tariffs against the US. This maintains its position as an open and accessible market for US and global businesses. However, as global supply chain disruptions intensify, particularly those stemming from US–China trade tensions, input costs may rise for many international businesses, placing added pressure on pricing competitiveness.
Opportunities for your international business
At ABN Australia, we have analysed what the recent US tariffs and the weakening Australian dollar mean for your business interests. The current economic climate presents a compelling case for international operators like you to consider establishing a presence in Australia. A lower Australian dollar is enhancing the global competitiveness of Australian goods and services, creating attractive pricing opportunities for foreign investors like you and consumers alike. At the same time, Australia’s proactive fiscal measures– including potential interest rate cuts and increased infrastructure spending – are reinforcing its position as a stable and strategic destination for investment amid global uncertainty.
Strategic considerations for expansion
As you look to expand into Australia, it is crucial to carefully evaluate the following strategic considerations to ensure a smooth and successful market entry:
Currency advantage – maximise your investment potential
With the Australian dollar now at a historically low exchange rate, your business can enter the market more affordably. From company setup and recruitment to operational expenditure, the costs of establishing in Australia are now more favourable than ever. If your business exports from Australia, a weaker currency also improves your global pricing advantage.
Should the Reserve Bank of Australia further reduce interest rates in response to economic uncertainty, the Australian dollar could weaken further, enhancing these benefits. However, businesses reliant on imports into Australia may need to factor in higher input costs due to currency depreciation.
Market potential – position for long-term growth
Australia continues to offer attractive growth potential across a range of sectors, particularly where government and private investment align. Areas such as renewable energy, advanced manufacturing, defence, technology and critical minerals stand out, particularly underpinned by alliances such as AUKUS – a trilateral security partnership between Australia, the United Kingdom and the US – and frameworks like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Moreover, in response to global trade shifts, businesses from countries facing tariffs may redirect goods into Australia. While this opens possibilities for broader supply options, it also increases competition. Your business may benefit from a distinct value proposition, especially in premium or niche markets such as renewables, sustainable goods or specialised manufacturing.
Regulatory landscape – navigating Australia’s business environment
Australia’s regulatory environment remains one of its core strengths. It is transparent, stable and open to foreign investment. With the government continuing to back local production and innovation through grants, subsidies and other incentives, it is essential that you familiarise yourself with key requirements in tax, employment and corporate governance.
Working with a local expert like us, ABN Australia, ensures your business remains compliant and well-positioned to access available opportunities. Our team offers deep insight into the complex regulatory landscape and can guide you through incorporation, tax registrations, licensing and more.
Supply chain considerations – building resilience in a turbulent world
Global supply chains remain under pressure due to escalating trade disputes and bottlenecks. Australia’s geographical location and strong trade relations in the Asia–Pacific region offer a strategic advantage. You may wish to explore options such as diversifying your supplier base, forming partnerships with Australian manufacturers or investing in local infrastructure to secure long-term resilience.
Furthermore, as redirected imports flood into Australia due to global tariffs, prices on certain goods may fall, presenting both challenges and opportunities. Targeting unmet demand areas – such as critical technologies, defence capabilities or luxury sectors – may help your business cut through the noise.
Risk assessment – understanding and managing global instability
The shifting trade landscape, with tit-for-tat tariffs and geopolitical tensions, has made risk management a vital aspect of international expansion. For Australia, this includes potential gross domestic product (GDP) impacts (e.g., a 0.1% decline from US tariffs alone), as well as vulnerability to external slowdowns, particularly in China, its top trading partner.
Nonetheless, Australia’s macroeconomic stability and openness to global capital position it as a relatively safe haven. Whether you are planning market entry, setting up operations or expanding your exports, it is essential to assess exposure to currency volatility, input cost changes and regulatory dynamics.
Seize the opportunity
The combination of a low Australian dollar, global trade realignments and a dynamic, innovation-led economy presents a unique window of opportunity for you who are looking to expand into Australia. While the road ahead may include volatility, Australia’s long-term fundamentals remain strong, making it a compelling destination for international businesses with a strategic vision.
If your business is considering expanding into Australia, now is an excellent time to take the next step. ABN Australia specialises in supporting international clients with seamless market entry and business establishment in Australia. Our services cover everything from company formation and tax compliance to workforce solutions and strategic governance. Whether you are entering for the first time or scaling your existing footprint, we are here to help you turn these global trade changes into a competitive advantage.
Get in touch with us today to explore how we can support your Australian expansion and help your business succeed in this shifting global landscape.
Published: 08th April 2025 | Last updated: 08th April 2025