AllFOR IMMEDIATE RELEASE 7 APRIL 2025
Canberra:
As an Australian defence industry advocate and coordinator, AIDN views tariffs imposed by the Trump administration as a significant concern for the global defence industry, with specific implications for our operations and the broader strategic environment. Whilst we understand that tariffs were implemented with the intention of promoting U.S. economic interests, we believe they have unintended consequences for international defence partnerships, innovation, and the free flow of critical technologies and goods.
One of the primary impacts of the Trump-era tariffs has been the disruption to established trade relationships, particularly between the U.S. and its allies, including Australia. Defence exports often involve complex supply chains, with components and technologies sourced from multiple countries. The tariffs, particularly those targeting steel, aluminium, and other essential materials, have led to increased costs for Australian exported goods. This results in higher prices for the products we provide to global markets, diminishing our competitiveness and potentially eroding our market share in the U.S. and other regions.
For the Australian defence sector, our relationship with the United States is crucial. The U.S. remains a key partner in terms of technology sharing, joint military exercises, and procurement of advanced defence systems. However, tariffs have created a barrier to collaboration and technology transfer. This directly affects the Australian defence industry’s ability to procure and export high-tech products and components to the U.S. and other allied nations. With the U.S. market being one of the largest and most influential defence markets in the world, this trade disruption can hamper the growth of the Australian defence industry and negatively impact innovation in defence technologies.
Australia’s strategic posture is heavily influenced by our alliance with the U.S., and as such, the imposition of tariffs poses a risk to maintaining strong defence cooperation. Tariffs could potentially incentivise the U.S. to turn inward, focusing on domestic production at the expense of international partnerships that are vital for ensuring the security and stability of the Indo-Pacific region. The security of our region requires robust collaboration between like-minded nations, and tariffs risk eroding the very foundation of this cooperation.
Whilst we acknowledge the right of any sovereign nation to impose tariffs, we call for a more strategic and collaborative approach to trade in the defence sector. Trade policies should be designed to enhance, not hinder, international cooperation, innovation, and technological advancements. We urge both the U.S. and Australian governments to engage in dialogue to mitigate the negative impacts of tariffs, ensuring that these policies do not undermine our mutual defence objectives or disrupt essential defence trade.
In conclusion, while tariffs may provide short-term economic benefits for some sectors, they pose significant challenges to the broader defence industry. AIDN remain committed to fostering strong, strategic relationships with international partners, including the U.S., and we believe that trade policies should be aligned with these goals to ensure continued prosperity and security for all parties involved.
ENDS
MEDIA CONTACT
John Kerin, Manager Government Relations, Australian Industry & Defence Network.
M: 0400 906 545
ABOUT AIDN
Established in 1995, the Australian Industry & Defence Network Limited (AIDN) is the peak industry association representing small-to-medium enterprises (SMEs) supporting the Australian Defence Force (ADF) and the Department of Defence (DoD).
AIDN proudly represents nearly 1,000 Australian SMEs, collectively employing approximately 61,000 Australians nationwide. In the 2021-22 financial year, these dedicated businesses contributed $10.6 billion to the national economy through sovereign supply chains, advanced manufacturing, research and innovation, skills development, and regional and veteran employment.
In an environment of economic and geopolitical uncertainty, AIDN’s agile membership is well-positioned to support the Australian Government’s urgent capability needs. However, clear guidance on specific priorities is essential to unlock the full potential of Australia’s Defence industry.
Through advocacy, representation, and tailored member services, AIDN champions the interests of Australian SMEs within the Defence and national security sectors. AIDN remains committed to partnering with the Australian Government to build a resilient and self-reliant Defence industrial base, driven by the evolving operational needs of the ADF.
The Australian Industry & Defence Network Incorporated (AIDN) is the peak industry association for small-to-medium enterprises (SMEs) who support the Australian Defence Force (ADF) and the Department of Defence (DoD).
