A new trade shock has hit the global economy. In 2025 the United States (US) Government announced a suite of new tariffs, barriers and trade rules that are upending the global trade system. This report provides an overview of the US trade policy, emerging impacts on Australian industry, supply chain disruptions and the supply chain regulatory system. 

The report finds that regulatory reform is needed to support resilient supply chains that can adjust to this period of trade disruption. 

Key findings

• Half of industrial businesses report current impacts from the US trade shock, with another quarter expecting it in the coming months.
• Supply chain disruption has returned. Having only just recovered from the disruptions of the pandemic, the performance of Australian supply chains has declined again in 2025.
• US tariffs are most directly affecting Australia's advanced manufacturers, who will lose market access for a major export destination.
• Investment in supply chain uplifts have increased in response to the trade shock, with 44% of manufacturers intending to raise their spending next year.
• 45% of industrials cite regulatory burden as a major barrier to their supply chain performance.