2026 guide to the Australia-United States Free Trade Agreement (AUSFTA)

The Australia–United States Free Trade Agreement (AUSFTA) is a critical pathway into the US market. With new baseline tariffs and the removal of duty-free thresholds, a thorough understanding of how the AUSFTA works is important for Australian businesses looking to trade with the United States in 2026.

Global trade between Australia and the United States has entered a new era in 2026. Goods that previously enjoyed benefits like duty-free access to the US under the Australia-US Free Trade Agreement (AUSFTA) are now subject to a 10% baseline tariff, making Australian exports more expensive for US buyers. 

The scale of this shift is significant. According to the United Nations COMTRADE database, Australian exports to the United States reached US $14.73 billion in 2024, up from US $12.6 billion in 2023¹. Additionally, the removal of the $800 de minimis exemption means that even low-value shipments are now taxed.

Amidst this changing landscape, the AUSFTA still remains a key tool for cross-border businesses in Australia. The agreement has thus far provided two critical advantages for Australian exporters: Preferential tariff rates as compared to competitors and targeted exceptions for key export sectors.

However, exporters now face greater scrutiny in the face of new tariffs, and a greater burden is now placed on them to prove compliance with Rules of Origin and maintain complete, accurate documentation. Proper due diligence is essential to secure preferential treatment, avoid delays at US Customs, and defend competitiveness in a high-tariff environment.

Why the AUSFTA is your strategic defence in 2026

The AUSFTA has long been more than just a free trade agreement. It laid the foundations for robust trade networks between Australia and the United States, connecting exporters to reliable buyers, partners, and supply chains. These networks have helped Australian businesses foster trust and long-term relationships that extend well beyond simple transactions.

Beyond these networks, the AUSFTA has also delivered tangible financial benefits in 2026. By keeping baseline tariffs lower than those faced by competitors, and carving out targeted exemptions for specific sectors like beef, coffee, and tea, the agreement has directly defended the margins of Australian exporters.

Of course, the picture isn’t entirely rosy. Some sectors face tariffs well above the baseline, including steel and aluminium, automobiles, and certain advanced computing chips. In these cases, the AUSFTA still offers a buffer, but only if exporters understand exactly which provisions apply and claim them correctly.

An airtight Certificate of Origin is now the key to using the AUSFTA as a true strategic defence. Without it, shipments risk delays, misclassification, or full US tariffs, turning hard-won advantages into lost revenue.

Mastering the Rules of Origin (ROO)

Getting your products across the US border without surprise tariffs starts with understanding and following Rules of Origin (ROO). This is what determines whether your goods qualify as “Australian-made” under the AUSFTA and whether you can claim preferential tariff rates.

Many exporters make the mistake of thinking that assembly or shipping from Australia is enough. The reality in 2026 is stricter. Your products must meet both transformation and value-add requirements, specifically the 35% Regional Value Content (RVC). With US Customs (CBP) currently auditing value-add claims to enforce the 10% baseline tariff, every component in your supply chain counts toward your eligibility.

Since the $800 duty-free threshold (de minimis) was suspended recently, every single shipment you plan to ship overseas from Australia to the US, regardless of its value, now requires a formal entry. This makes a complete Supporting Statement of Origin more than just paperwork; it’s your primary defence against your goods being held or taxed at non-FTA rates.

How to maximise your Australia-US Free Trade Agreement (AUSFTA) benefits in 2026

1. Get your HS Codes right

Harmonised System (HS) codes are the international language of trade, but today, the stakes are higher. While the first six digits are standard, you must ensure your goods align with the 10-digit HTSUS code used by US Customs. A single incorrect digit can misclassify your exports into a high-penalty category, making accurate classification the first step in ensuring you avoid unexpected duties.

2. Duty recovery vs. drawbacks

Mistakes happen, and sometimes shipments are charged tariffs that shouldn’t apply under the AUSFTA. Duty recovery (Post-Summary Correction) allows you to claim back overpaid duties if you can retroactively prove AUSFTA eligibility within one year of entry.

Conversely, duty drawback is a vital tool for manufacturers who import raw materials into Australia, pay duties locally, and then export the finished product to the US. Maintaining a paper trail of commercial invoices and Supporting Statements for international shipping is now critical to reclaiming these costs.

3. Leverage government resources

Don’t navigate the 2026 trade shifts alone. The Australian Trade and Investment Commission (Austrade) has updated its Go Global Toolkit specifically for the 2026 landscape. It offers a real-time Tariff Finder, sector-specific guidance on the 10% reciprocal rates, and webinars designed to help SMEs stay proactive.

Using these resources ensures you aren't just reacting to trade changes, but planning for them.

Protecting your margins with strategic logistics

International shipping strategy is now as critical as product strategy. With new tariffs affecting nearly all shipments to the US, how you deliver your goods can make or break your competitiveness.

Delivered Duty Paid (DDP) has become the go-to approach for Australian exporters. By covering tariffs and duties upfront, DDP ensures your US customers never face unexpected costs, keeping the buying experience smooth and preserving your brand reputation.

Some exporters are also exploring warehousing and nearshoring solutions. By holding stock in US-based fulfilment centres, businesses can batch-ship products, reduce repeated tariff impacts, and maintain tighter control over delivery times and costs. This approach not only mitigates risk from tariffs but also enhances reliability for customers across the United States.

How DHL Express simplifies 2026 US exports

The AUSFTA gives Australian exporters a competitive edge, but fully leveraging it now requires careful paperwork and strict adherence to rules of origin. DHL Express helps businesses navigate these complexities with expert guidance and streamlined processes.

DHL Express’s customs specialists support SMEs in handling all necessary documentation, including Statements of Origin, and in managing more complex tariffs like Section 232 and baseline exemptions. This ensures your shipments move efficiently and avoid unnecessary delays at US Customs.

Digital tools such as MyDHL+ make compliance easier by storing your origin documents and automatically including FTA data on commercial invoices. Meanwhile, DHL Express’s global network bypasses the delays that disrupted postal services during the recent tariff transitions, giving your products fast, reliable access to the US market.

Turn the AUSFTA into your competitive advantage

Beyond tariff relief, the AUSFTA gives Australian exporters a roadmap for strategic trade planning, helping anticipate regulatory changes, secure key market access, and adapt quickly to evolving US import rules.

Properly leveraging its provisions requires careful documentation, adherence to rules of origin, and strategic planning, but the rewards are clear: smoother customs clearance, retained price competitiveness, and expanded market opportunities.

Don’t let new tariffs slow your US growth. Open a DHL Express business account today and let our customs specialists guide your exports, helping you move products efficiently, confidently, and reliably.

Any regulatory information contained herein is for informational purposes only and DHL assumes no responsibility for the accuracy of the information. DHL does not provide specific regulatory or legal advice to the public and you are encouraged to seek your own legal or compliance counsel.