Why Trump’s US tariffs could shatter your retirement plans – as experts reveal the hidden impact on your super

Donald Trump’s brutal new tariffs are already hurting retirement plans for millions of Australians, with superannuation balances going backwards in February.

From March 12, Australian exporters selling aluminium and steel to the United States will be hit by the 25 per cent import tariffs, with no reprieve in sight.

But even before Wednesday’s bruising new US import taxes comes into effect, the threat has seen super funds drop for only the second time this financial year.

Balanced super funds fell by 0.8 per cent in February, despite the Reserve Bank of Australia’s interest rate cut last month.

SuperRatings executive director Kirby Rappell warned the RBA had failed to stem concerns about President Trump sparking a global trade war, prompting the drop.

‘It was clear that signs of discomfort were emerging as markets digested the looming risks of tariffs and the effects that may result in the global economy,’ he said.

‘Despite the Reserve Bank of Australia lowering interest rates in February, both Australian and international share markets declined over the month as the President’s agenda came into focus. 

‘The impact of tariffs on China and potential flow on effects to the economy influenced Australian share expectations, offsetting any potential benefit from the reduction in interest rates.’

Many Australian companies have already given up hope of a tariff exemption, and fast-tracked exports to the US in a bid to dodge the taxes before they kick in.

As a result, Australian exports to the United States increased beyond their normal monthly levels in January.

Westpac senior economist Mantas Vanagas said this led to Australia’s overall exports increasing by 1.3 per cent while imports fell 0.3 per cent that month.

‘Australian exports to the US surged sharply, boosted by the frontloading of goods imports in the US ahead of the increase in tariffs,’ he said.

‘The flow was around twice as high compared to December and more than three times higher than the typical flow last year. 

‘Interestingly, the increase in goods exports to the US far exceeded the overall increase in exports in the month, pointing to trade diversion towards the US. 

‘Indeed, other major trading partners, mainly in Asia, saw significantly lower flows of Australian exports.’

Moomoo market strategist Jessica Amir said investors should look at healthcare stocks as a better investment during a time of global uncertainty about trade wars.

‘Regardless of tariffs, people still have human needs,’ she told Daily Mail Australia.

‘That’s a reason why institutions, typically, put money  in market downturns into healthcare – that’s why healthcare is outperforming this year.’

Ms Amir said healthcare stocks also outperformed the rest of the share market in 2018, when President Trump initially introduced tariffs during his first term.

Since the start of 2025 shares in Sigma Healthcare, the owner of Amcal and Chemist Warehouse, climbed 8.8 per cent while the S&P/ASX200 fell by 2.9 per cent. The newly-merged group now has 1,000 pharmacies across Australia. 

While Australia will still be hit by the new import taxes on Wednesday, the tariffs on Canadian and Mexican goods have been delayed by a month until April 2.

But there’s no exemption for Australia, despite Trump having a ‘friendly’ phone call with Prime Minister Anthony Albanese last month, who lobbied him to reconsider.

Professor Peter Dean, the director of foreign policy and defence at the University of Sydney‘s United States Studies Centre, said Trump was using the tariffs to leverage Australia into boosting defence spending.

‘He’s far more willing to impose costs and not do things if you’re not seen to be doing your fair share,’ he told Daily Mail Australia.

The Trump administration wants Australia to spending three per cent of its gross domestic product on defence instead of the current two per cent.

‘Australia is well perceived in the United States and well perceived as pulling its weight but questions will be asked if the new benchmark is three per cent and we’re not at three per cent,’ Professor Dean said. 

Since 1952, the US has had a regular trade surplus with Australia, where Australia bought more goods and services from the US than the US bought from Australia. 

But President Trump is annoyed the American trade surplus with Australia has been narrowing during the past decade.

Should no concessions be forthcoming, this would be a contrast to 2018 when Australian was given an exemption from 25 per cent American tariffs on steel and 10 per cent import taxes on aluminum.

Australian steelmaker BlueScope already manufactures steel in the US.

But the tariffs would affect South Australia’s Whyalla steelworks, now in administration, and the Tomago Aluminium smelter in Newcastle.