Nontariff Barriers in Australia: Impact, Policy, and What to Know (2025)

When Australians hear about trade wars or international negotiations, the spotlight often falls on tariffs—those direct taxes on imports and exports. But in 2025, it’s the nontariff barriers (NTBs) quietly shaping the cost of living, business strategies, and even what lands on supermarket shelves. Let’s unpack what NTBs look like today, why they matter more than ever, and how fresh policy shifts are changing the landscape.

What Are Nontariff Barriers and Why Should You Care?

Nontariff barriers are policies, regulations, or procedures—other than traditional tariffs—that restrict or complicate the flow of goods and services across borders. Unlike a straightforward tax, NTBs can be subtle, technical, and often more disruptive. Common forms include:

• Quotas: Limits on the quantity of certain imports or exports.
• Import licensing: Requiring special approvals that can delay or block products.
• Technical regulations: Safety, health, or environmental standards that foreign producers must meet.
• Customs procedures: Lengthy inspections or paperwork that slow down trade.
• Subsidies and local content rules: Policies that give local businesses an edge or require a certain percentage of Australian content.

While these barriers are often justified as protecting health, safety, or the environment, they can also be used strategically to shelter local industries from competition—raising prices for consumers and limiting choice.

2025: New Nontariff Barriers on the Rise

The past year has seen a surge in NTBs worldwide, with Australia both responding to and implementing new measures. Key drivers include the push for food security, climate action, and geopolitical tensions. Recent policy moves include:

• Biosecurity standards: In 2025, Australia has tightened import requirements for agricultural goods, citing risks from invasive pests. For example, stricter inspections on imported honey and nuts have led to delays and shortages, impacting prices at major supermarkets.
• Carbon border adjustments: Following the EU, Australia is piloting carbon tariffs on steel and aluminium imports with high emissions. While designed to encourage cleaner production, these measures also make some imports less competitive, affecting construction costs and manufacturing.
• Digital trade regulations: New data localisation rules require some tech firms to store and process data within Australia, complicating cross-border digital services and raising compliance costs for fintech and e-commerce businesses.

For small businesses, these barriers can mean unexpected costs or the need to shift suppliers. For everyday Australians, the result can be higher prices and reduced product variety.

Real-World Impact: From the Farm Gate to Your Plate

Consider a regional cheese maker hoping to export to Asia. While tariffs on dairy are gradually falling thanks to trade agreements, nontariff barriers—like mandatory certification for animal health or specific labelling in local languages—can be more difficult and expensive to navigate than the tariff itself. In 2025, some Australian producers have reported that compliance costs for NTBs now exceed tariff costs in key export markets such as China and Indonesia.

On the flip side, NTBs can also protect Australian industries. For example:

• Wine exports: In response to trade disputes, China has ramped up NTBs on Australian wine, including complex customs checks and new labelling rules. Exports have dropped, pushing winemakers to diversify into Southeast Asia and Europe.
• Local manufacturing: Government procurement policies now favour Australian-made goods for public infrastructure, effectively sidelining some foreign suppliers without resorting to overt tariffs.

Consumers see the effects at the checkout. In 2025, the average price of imported specialty foods has climbed by 6% compared to 2024, according to the Australian Bureau of Statistics, with supply chain friction and NTBs cited as leading factors.

What’s Next? Navigating the New Trade Reality

Australia is negotiating new trade agreements with a sharper focus on reducing NTBs—not just tariffs. The Australia-UK Free Trade Agreement, which came into effect in late 2024, includes specific chapters on streamlining customs procedures and mutual recognition of standards, aiming to cut red tape for exporters and lower costs for consumers.

For businesses, understanding and adapting to NTBs is now a core part of international strategy. Many are investing in compliance, lobbying for clearer rules, or shifting supply chains to sidestep the worst barriers. Meanwhile, policymakers are under pressure to balance legitimate public interests (like biosecurity and sustainability) with the need for open, affordable markets.

For consumers, staying informed about these behind-the-scenes trade issues is crucial, as they directly influence everything from grocery bills to job opportunities in export-driven sectors.