Can Australians really ditch US products and 'buy local'? The data says it's complicated

Australians are being encouraged to swap American goods for home-grown products at the check-out — but is it that easy?

While stopping short of calling for a boycott, Prime Minister Anthony Albanese has put the spotlight on supporting homemade products in the wake of Australia being swept up in the Trump administration's tariff regime.

"Buy Bundy," was one of the PM's suggestions. But a look at the data and the policies shows it's much more than that.

• What does Australia import from the US?
• What is made in Australia?
• How hard is it to avoid US products?
• How does the cost of living factor in?
• Is there any funding being thrown at this?
• Do 'buy local' even campaigns work?

What does Australia import from the US?

Firstly, it's handy to know the US is Australia's second-largest import source, totalling about $88.2 billion in 2023-24.

Machinery and vehicles — think of brands like Tesla and Harley Davidson — make up the bulk of the US products shipped in.

Aircraft, spacecraft and associated parts is another large category, totalling more than $2 billion in 2023.

But when it comes to the supermarket shelves, Australia imports things like pig meat, spirits, fresh grapes, chocolate, preserved fruit and nuts, confectionary and sauces from the US.

Australia also imports about 90 per cent of its medicines with about 21 per cent of that coming from the US in 2023. 

That includes various medications and blood products, as well as wadding, gauze and bandages.

A range of services are also imported from the US, including financial, travel and computer and information services.

What is made in Australia?

As you'd expect, fresh food is the most common product of Australia.

That's meat, seafood, dairy, bakery, fruit and vegetables and also alcohol such as beer and wine.

The Australian Made Campaign Ltd is a not-for-profit public company that is responsible for coordinating the commonplace logos that feature a golden kangaroo in a green triangle.

Products with the Australian Made logo aren't necessarily Australian-owned, or made with fully local components, but must have gone through its "last substantial transformation" in Australia, according to its website.

Australian Made Campaign chief executive Ben Lazzaro said there's generally an Australian option in most product sectors.

"We've actually got 4,500 businesses licensed to use the brand, who sell tens of thousands of products here and around the world," he told ABC Radio Hobart.

"So there is an option, but sometimes we've just got to take that a little bit extra time to do a bit of research."

How hard is it to avoid US products?

It's not as easy as just simply avoiding American products — or products from anywhere else for that matter.

Bankwest Curtin Economics Centre senior research fellow Daniel Kiely said goods move between economies all the time, making it difficult to pinpoint all the parties involved in the production of an item.

"It's not as simple as saying, 'that's a US product, so don't buy it'," he said.

"Consumers often don't know where these products are bought.

"Given the complexity of supply chains, it's very hard to track the entire level of components or inputs into a final product that's being consumed by households here in Australia."

How does the cost of living factor in?

Dr Kiely said it's hard to ignore the fact that imported goods were often cheaper than Australian-made items.

"I think at the moment with the cost-of-living crisis, it's hard to ask households to buy local if buying local implies that you have to pay a higher cost," he said.

Dr Kiely said it was critical any trade dispute did not "blow up to be a bigger issue".

"We rely heavily on investment from the US, but equally a lot of Australians invest in US businesses," he said.

"I think it's important that we look at the longer term picture here that we don't damage that strong relationship."

Is there any funding being thrown at this?

The prime minister has spent the past fortnight teasing a "buy Australian" budget measure, stressing in several media interviews that he needs everyone to "back Team Australia."

But the actual budget papers unveiled this week have shown it to be a minor item among the government's spending plans.

Australian products will benefit from a $20 million investment in "initiatives to encourage consumers to buy Australian-made products".

Do 'buy local' campaigns even work?

Buy local movements are nothing new, with campaigns to boost foot traffic and support for homegrown brands commonplace across the nation after the COVID-19 pandemic.

Recently re-elected WA Premier Roger Cook even based an entire election campaign around the idea of things being "Made in WA".

Also in the west, the City of Fremantle launched a marketing blitz at the end of 2023 to encourage more spending at independent retailers.

Data collected so far comparing the consumer spend across the summer of 2024-25 with the same period the year before show a 5.41 per cent boost in specialised food retailing spend.

Spending on furniture and other household goods in Fremantle was up 3 per cent, and dining and entertainment saw a growth of 2.75 per cent.

The only area that had a decrease in spending was the local specialised and luxury goods market.

Fremantle Mayor Hannah Fitzhardinge said in some areas there was an increase of up to $1 million in spending, which she saw as a win for buying local.

"You might go home and you may have spent a little bit more money than you had intended, but you've also got some things that are truly unique," she said.