Australia is planning to eliminate 500 nuisance tariffs to demonstrate its commitment to free and fair trade, addressing concerns from the Productivity Commission about the economic costs of tariffs.

Australia continues to advocate for tariff exemptions through discussions with US trade officials and has expressed disappointment over the limited time given to small Australian businesses to adapt to US tariffs.

This move is partly a reaction to US trade policies, including a 10% tariff on general exports and a 50% tariff on Australian copper, steel, and aluminium imports, which Australia is actively protesting.

The Productivity Commission estimates that Australia's 2,640 import tariffs cost between $1.3 billion and $4 billion annually, generating only about $2 billion in revenue.

Australian officials, including Treasurer Jim Chalmers and Trade Minister Don Farrell, emphasize that removing tariffs will reduce compliance burdens, modestly lower consumer prices, and send a strong message against protectionism.

In response to US tariffs, Australia Post has reduced shipments to the US, allowing only essential goods under specific value thresholds, reflecting ongoing economic tensions between the two nations.