Canegrowers chairman Owen Menkens said he was hopeful the industry would continue to operate into the premium US market without too much disturbance, but added it was closely watching the tariff situation.

"At present we've been hit with a 10 per cent tariff, but the critical thing is that rival exporters, such as Brazil, have got the same treatment, so we are not comparatively worse off as a result of the tariffs," Mr Menkens said.

He said with the relatively small hike due to tariffs he did not think there would be consumer demand erosion either.

"We've seen in countries which have imposed a sugar tax we haven't seen the demand drop, we'd expect the same in the US, either the costs will be absorbed or a small increase, not enough to alter demand, will be passed on."

Only a tiny percentage of Australia's average 4 million tonne crop of sugar makes it to the US tariff-free, with an tariff-free export quota of 90,000 tonnes prior to the recent changes.

In some years there was some surge demand, meaning total exports could get as high as 130-140,000 tonnes, however Mr Menkens said the domestic US sugar producer lobby ensured that in spite of a need for imported sugar to meet demand that imports were tightly controlled.

"We're not sure how the new tariffs will tie in with existing rules, but it is going to add further complexity."