This business signed a $3.5m export deal. Then Trump’s tariffs hit

An Australian caravan maker has been in crisis talks this morning to figure out how a $3.5 million export deal into the US market will be impacted by Trump’s new tariffs.

Melbourne-based Crusader Caravans recently inked a deal to export 50 of its caravans to a dealership network in Florida, an agreement worth about $3.5 million.

Crusader Caravans founders Michael Paidoussis and Serge Valentino.Credit: Justin McManus

Representatives from the American Caravan Association visited the Epping manufacturing facility last week to sign off on the accreditation required to allow the export deal to go ahead.

“We are hoping to have the caravans leaving our shores in the next two weeks, and we’ve got another three US caravan dealers we’re talking to because we’re about to get that US accreditation,” managing director Michael Paidoussis said.

“Unfortunately, the timing has been a little bit off this time. The devil will be in the detail … but from what I understand, this deal will not escape Trump’s tariffs,” he said.

“Initial conversations here this morning are that we are likely to absorb part of the cost, but we don’t think we can absorb all of it, as it will put too much margin pressure on our business.”

Announced this morning, the Trump administration has said it will implement a 10 per cent tariff on all goods exported to the United States as part of a sweeping overhaul of import duties in an effort to reassert the country’s “economic independence”.

Markets locally and abroad fell sharply in response to the announcement, with the ASX falling 2 per cent, or about $48 billion, on opening. Paidoussis said the company was in talks with trade partners about the costs.

“The tariff is difficult to digest, and we’re trying to decide on the impact on demand on sales volumes if we pass it on. If the tariff is 10 per cent, we’ve got to account for that immediate 10 per cent tariff cost on these products which directly increases our landing costs,” Paidoussis said.

Prime Minister Anthony Albanese labelled the tariffs as unwarranted, saying “this is not the act of a friend”, and Paidoussis hoped the government will push back. While he accepts that the shifting goal posts push small businesses like Crusader to innovate, he hopes for swift government action to protect Australian manufacturers.

“The caravan industry is one of the last bastions of the manufacturing industry and if it’s not protected to some degree, it would be a hell of a shame for it to go down the same path as the car industry,” he says.

“We should be going back to Trump and pushing to understand why he’s doing this to Australia. Other than beef, I don’t think we pose a threat to them in any way, shape or form.”

Crusader Caravans has been achieving record sales month-on-month over the past six months after releasing its 2025 models in October last year.

Aimed at the mum-and-dad market, the company manufactures up to 50 caravans a week, or more than 2000 a year. Crusader employs 250 people at its Epping manufacturing facility and has more than 28 models in its 2025 range priced from $50,000 to $180,000.

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