Global Changes, Local Consequences

The Trumponomics impact on Australian small business is becoming more visible as economic uncertainty intensifies. Since Donald J. Trump returned to the White House in January 2025, global markets have experienced volatility, leaving Australian SMEs exposed to the ripple effects of aggressive U.S. trade policies. While headlines focus on Wall Street, the real pressure is being felt by small businesses grappling with shifting demand, rising costs, and tighter cash flow.

Rising Costs and Disrupted Supply Chains

Trump’s proposed tariffs—particularly on Chinese imports—are disrupting supply chains worldwide. Australia, deeply connected to global trade, is feeling the squeeze. As local exporters await exemption decisions, importers face higher costs and shifting timelines, making it harder to maintain profit margins and customer satisfaction.

Super, Lending, and Consumer Confidence All Hit

The uncertainty isn’t just external. Many small business owners with self-managed super funds (SMSFs) have seen their balances fall, which can impact linked insurance coverage. Loan conditions also remain tight, with average unsecured business loan rates at 8.99%. Despite the Reserve Bank’s efforts to ease pressure, relief has been slow, and consumer confidence continues to lag.

Insurance Premiums Continue to Climb

Insurance is another area of concern. Premiums for commercial property, liability, and cyber coverage have spiked—often by more than 30%. Insurers are responding to global risk by tightening policies and increasing exclusions, leaving SMEs more exposed. Now is the time to review your policies, especially if your operations rely on global suppliers.

How to Stay Resilient in Uncertain Times

To navigate the changing landscape, SMEs should:

• Audit insurance coverage and update it to match new risks.

• Explore alternative suppliers and markets, including government-supported trade shifts.

• Apply for rebranding grants to promote Australian-made products.

• Consider fixed-rate financing options to guard against rising costs.

• Realign marketing to reflect evolving consumer values.

Be Prepared with the Right Support

The Trumponomics impact on Australian small business may be challenging, but with the right advice and support, your business can adapt and thrive. As your broker, we’re here to ensure your protection evolves with the times—keeping your coverage strong and your business resilient.

If you’d like to know more about Trumponomics and it’s global effect CLICK HERE, or contact us today.