Australia has declined China’s invitation to cooperate on opposing the tariffs imposed by former President Donald Trump, as tensions between the US and China continue to escalate.
The US recently implemented a 10% import tax on Australian goods, while China, Australia’s largest trading partner, raised its tariffs on Australian exports to 125%. In response, Chinese Ambassador to Australia Xiao Qian called for a united stand against what he described as the “hegemonic and bullying behaviour” of the US, urging Australia to join China in resisting the tariffs.
However, Australian Prime Minister Anthony Albanese stated that Australia would act in its own national interest, and Defence Minister Richard Marles emphasized that the country would not align with China on this matter. “It’s about pursuing Australia’s national interests, not about making common calls with China,” Marles told the Australian Broadcasting Corporation.
The US’s tariff policy has shifted recently, with President Trump announcing a 90-day pause on high import tariffs. During this period, a 10% tariff will apply. However, China faces additional tariffs following its announcement of an 84% counter-tariff on US imports.
Despite expressing frustration over the tariffs, Australia has refrained from retaliating and instead seeks further negotiations with the US. In an opinion piece for Nine Newspapers, Ambassador Xiao criticized the US’s approach, warning that a “weak compromise” could destabilize the global economic system.
While Australia values its trade relationship with China, Albanese emphasized the country’s efforts to explore other export opportunities, particularly in regions where the US is not involved. “Eighty percent of trade does not involve the United States,” he noted, highlighting the importance of diversifying trade partners.
Australia is also working to reduce its dependence on China by strengthening trade relationships with countries such as Indonesia, India, the UK, and the UAE. Australian Trade Minister Don Farrell has recently held talks with officials from Japan, Singapore, South Korea, and India as part of this strategy.
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