**Sydney**: Australian skincare company Blaq faces a halt in US exports after new US tariffs hike costs by up to 145%, threatening viability. Amid broader trade tensions, some exporters shift focus to Asia while others seize new market opportunities.
Sydney businessman Robert Jarmyn is facing significant challenges as his skincare company, Blaq, grapples with the impact of newly imposed tariffs by the United States. A recent shipment of skincare products valued at $250,000 from China incurred an additional $125,000 charge, simply labelled “Trump tariff,” following the announcement of a new tariffs regime in early April. “It was pretty devastating, the blood pressure went up,” Jarmyn remarked regarding the unforeseen expense. As a result, he has paused all exports, stating, “I just haven’t put anything on the water since.”
The tariffs implemented by the U.S. affect approximately 12,000 Australian businesses that export goods to the country. While Australian-made products now incur a duty of 10%, those relying on Chinese manufacturing, such as Blaq, are facing staggering tariffs of up to 145%. Jarmyn highlighted that the current tariffs could inflate the retail price of a Blaq face mask from $29 to nearly $80—pricing that would likely deter consumers.
In the wake of Trump’s announcement, Australian exporters are scrambling to adapt. Some businesses are closing, others are seeking new markets, and a few are managing to find opportunities amidst the turmoil. The impact of the tariffs has also reverberated through the Australian share market, which shed nearly $200 billion in value over the course of a week, before recovering as investors realised that the direct effects on local businesses might be limited.
Bruce Tyrrell, general manager of Tyrrell’s Wines, noted a decline in their U.S. sales from tens of thousands of cases annually in the 1990s to under 3,000 now. “You never move away from the US, but it’s probably not going to be number one priority,” he said, indicating a shift in focus toward new markets in Asia.
Data from the Australian Bureau of Statistics shows that American consumers purchased $24 billion worth of Australian goods in 2024, a figure overshadowed by the imports from other nations such as Japan and China. While a Westpac analysis suggested that tariffs would minimally impact exports in sectors such as agriculture and mining, industries reliant on manufacturing and livestock production may be more exposed. Stephen Smith of Deloitte Access Economics commented that despite the uncertainty, only about 4% of Australia’s goods exports by value are destined for the US, limiting the immediate economic ramifications.
The broader implications of the tariff regime suggest a potential deterioration of global economic confidence, stemming from the escalating trade tensions between the United States and China. The International Monetary Fund has raised concerns that the uncertainty could hinder global growth.
Meanwhile, some Australian businesses are viewing the situation as an opportunity. Mark Chapman of Clean and Pure has initiated plans to re-enter the U.S. market, seizing the moment as larger competitors face disruption. Chapman observed that while major corporations struggle to adapt, his smaller business can move more swiftly.
In a similar vein, Andrew Coppin, co-founder of Farmbot, expressed gratitude for moving his operations to Texas, allowing him to establish a factory to better serve his American customer base. “It was sort of fortuitous that we did that,” he noted, emphasising the benefits of local production.
Despite these adaptive strategies, the uncertainties surrounding tariffs and future export capabilities loom large for companies like Blaq. Jarmyn is contemplating a pivot in strategy come June, asserting that if the tariff landscape remains unchanged, he may need to abandon his U.S. ambitions entirely. As he put it, “I’m hoping something happens by the end of June. If it doesn’t, then it does mean that I really do have to make a pivot pretty quickly.”
Source: Noah Wire Services
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