Shifting global trade policies could spark global supply chain disruption, higher operating costs for Australian firms based in the US, increased compliance burdens and trade diversion risks for businesses, RSM Australia has said.

“While Australia may leverage its strong strategic ties to negotiate exemptions, businesses must not be complacent,” RSM wrote in a release.

“Companies should proactively assess their exposure, explore alternative supply chains, and implement tariff mitigation strategies to navigate the shifting global trade landscape.”

Being prepared will be key for businesses looking to mitigate the negative impacts of tariffs, RSM said.

Businesses should identify exposure to US tariff risks across their supply chains and look to engage with alternative markets in free trade zones and low-tariff economies.

Companies should also renegotiate contracts with buyers and suppliers to share or pass on tariff costs, and review opportunities to minimise tariffs where possible.

While the US has only imposed tariffs on steel and aluminium imports, it is likely that additional duties will be applied across other sectors in coming months.

RSM predicted that the US would apply tariffs on agricultural products, alongside manufactured goods including pharmaceuticals. Tariffs on agricultural products would take a hit to Australia’s meat and dairy exports, which account for approximately 20 per cent of Australia’s total exports to the US.

Australian e-commerce businesses with large US customer bases would also be among those most disrupted by the tariffs, as well as freight and logistics companies.

Trade disruptions could spark volatility in global shipping costs, RSM warned. To stay ahead of this, businesses should consider adjusting shipping contracts to secure stable freight rates.

Policymakers would also have to act decisively to minimise the impact of tariffs on the Australian economy. RSM said the incoming government should strengthen trade diplomacy tactics, leveraging free trade agreements and geopolitical ties to negotiate tariff exemptions.

RSM added that policymakers should also work to enhance domestic manufacturing, engage with alternative trading partners and implement safeguards against trade diversion which could see excess global supply flooding into Australian markets.

“Now is the time for businesses and policymakers to act to safeguard Australia’s economic interests,” RSM said.