U.S. tariffs on all imported products have created significant challenges for exporters in Australia, especially for smaller businesses whose products are manufactured in China.
Beatrice Toh started her children’s play mat brand, HeyDoodle, in Melbourne in 2019.
Since then, her business has grown steadily.
After noticing an increase in orders from the U.S., Toh decided to establish a bigger presence there in 2024 at significant cost to her business.
"We had to look into insurances, business structures, you know, business setups, taxes, warehousing, inventory. And there was, you know, it took us about six to eight months to get ready to launch," she said.
When U.S. President Donald Trump announced a 10-percent tariff on goods imported from Australia earlier this year, Toh said she was confident the company could handle the additional costs.
But that confidence soon crumbled when Trump placed 145 percent tariffs on China, where HeyDoodle's products are manufactured.
"It means that every product that we send in (to the U.S.) - today's rate is 145 percent. Every product that we send in will incur a 145-percent tariff on top of the cost of the goods, and that significantly blows out any economic viability at all," said Toh.
She said the tariffs will ultimately be passed through to consumers.
"At this point, we are negotiating with our partners. You know, everyone's sort of bearing the costs. We are bearing some of it, the wholesale agents bearing some, the customers will end up having to pay a higher price for their products," said Toh.
For now, Toh said she is relying on stock already in the U.S. to fill orders. Like many business owners around the world, she’s waiting to see what happens with the current tariffs before making any long term decisions.
Australian exporters facing US tariff pressure
