get immediate clarity on what this means for them?’” Wright shared. “By midday that same day, we had 150 brands on a call with our partner Zonos, unpacking the announcement and mapping out interim pivots,” she continued.  Zonos is a cross-border tech specialist that has been approved by US Customs and Border Protection as a qualified party to collect and remit duty for parcels inbound to the US. Dean Salakas and Jethro Marks, founders of the fast-growing “Aussie Retail Community” group on WhatsApp, held a similar call for around 50 people on the day the shipping suspension was announced.  “Panic and chaos” is how Salakas described retailers’ reactions: “There was a lot of confusion around, ‘how did we get here?’” he told Inside Retail.  Over the past week, the question has become, ‘how do we move forward?’  Many brands have found temporary workarounds, while some have decided to hit pause on US orders altogether. However, there is still a lot of uncertainty as the situation continues to evolve.  Navigating new shipping routes  While Australia Post has suspended shipments to the US for now, retailers can still use alternative commercial providers like DHL and FedEx. However, cost and congestion could become a problem.   “I think we’re going to see everything choke up around DHL,” Salakas said. “They have the capability [to ship], but there’s only so much volume they can handle.” Wright added that “the real challenge is cost”.  “Commercial couriers attract higher tariff rates compared to Australia Post, which puts extra pressure on margins for brands,” she stated. “Beyond that, there are multiple paths forward depending on your size, scale and where you manufacture,” she added. According to Wright, Australian brands can take small steps like conducting product pricing reviews or major leaps like localization and supply chain diversification. “The key thing to understand is that navigating tariffs isn’t one-size-fits-all – what works for one brand may not be right for another,” she clarified. Still chasing the American dream The US market is coveted by brands around the world, but for Australian brands in particular, it offers potential for immense growth due to its larger consumer market.  Wright believes the appeal of the US market in a Trump era rife with tariffs is entirely dependent on the brand’s individual cost structure. “The US is a huge and attractive market in theory, but in practice it only makes sense if your business model allows for profitability after tariffs, marketing, shipping and operational costs,” she elaborated. “For some brands, the opportunity is still incredibly compelling. For others, the current landscape means their focus may be better placed elsewhere.” Ugg Australia is one of the lucky brands that only incurs a 10 per cent tariff because it manufactures its sheepskin products locally. According to the brand’s CEO Lena Fishman, the majority of Ugg Australia’s direct competitors manufacture in Vietnam or China, and are subject to a 30 per cent tariff.  “The US is one of our main focuses at the moment for our international direct-to-consumer [business],” Fishman stated. For now, Ugg Australia has made the decision to absorb the extra costs and duties on behalf of its customers, but it will need to see its final shipping bill before deciding whether or not to raise prices going forward.  However, Salakas said he has heard of some retailers choosing to pause their US orders for now.  “For some retailers, they’re looking at a complete switch-off. They’re going to wait for it to blow over and turn it back on,” he said.  They’ll believe it when it ships Wright is optimistic that Australia Post will resume shipping to the US in the mid-term, keeping in mind that no one is more motivated to get back online than Australia Post.  “While nothing is guaranteed, my view is they’ll want to be operational before the final quarter of the year,” Wright said. “Quarter four is the busiest and most critical period in global e-commerce, and it’s in everyone’s best interests to see services reinstated before then,” she continued. Meanwhile, Ugg Australia’s CEO remains sceptical after previous promises. “As a 44-year-old business, partnerships are everything – we know Australia Post will get there, and everyone has tried to work together to solve this, but we have to make a functional decision,” Fishman shared. “I think what I’ve learned in the last tumultuous month is when the contract’s in front of you, that’s when it’s real. “There are some great promises, expectations and deals, but until someone actually puts a contract in front of you, picks up your goods and delivers them, then it’s all words and no action.”