Australia: 10% Baseline Rate — Notable Given the Existing FTA
Australia received the baseline 10% IEEPA reciprocal tariff rate effective April 5, 2025. This was notable because the United States and Australia have had a Free Trade Agreement (AUSFTA) in force since 2005 — meaning many goods had long enjoyed duty-free access to the U.S. market.
The IEEPA executive order overrode the AUSFTA duty rates, imposing a 10% tariff on Australian goods regardless of any preferential treatment the goods would otherwise receive. This made the IEEPA duty itself particularly frustrating for Australian exporters and U.S. importers who had structured supply chains around duty-free access.
Important eligibility note: If goods entered under AUSFTA preferential treatment and the IEEPA duty was actually assessed, that IEEPA duty component is potentially refundable through CAPE. However, classification and entry data must confirm that IEEPA duties were collected — not merely that the goods entered during the IEEPA period.
Australia’s Key Export Categories to the U.S.
- Beef: Australia is one of the largest sources of beef imported into the United States
- Wine: Australian wine — Shiraz, Chardonnay, and blends — is widely distributed in the U.S.
- Wool and wool products: High-quality merino wool and finished woolen goods
- Minerals and metals: Aluminum, gold, and lithium products
- Pharmaceuticals: Australian pharmaceutical manufacturers export finished medicines and APIs
- Educational and professional services goods: Specialized test equipment and medical devices
Key Product Categories
Beef (Chapter 02): Australian grass-fed and grain-fed beef is a significant import category for U.S. food service, retail, and processing companies. The 10% IEEPA rate raised the landed cost for U.S. buyers.
Wine (Chapter 22): Australian wine — particularly from South Australia, Victoria, and Western Australia — is widely distributed in the U.S. The 10% IEEPA rate affected wine importers and distributors.
Aluminum (Chapter 76): Australian-produced aluminum and aluminum alloys imported by U.S. manufacturers. Note: Section 232 aluminum tariffs (10%) may apply separately and are NOT refundable through CAPE.
Wool (Chapter 51): Australian merino wool and wool tops imported by U.S. textile manufacturers.
Estimating Your Australia Refund
For an importer that brought in $2,000,000 in Australian goods during the IEEPA window:
- Estimated duty refund: $200,000 (10% × $2,000,000)
- Estimated interest (~5%): $10,000
- Estimated total: $210,000
Use the calculator above to estimate based on your actual import value.