Australia has firmly rejected a proposal from Beijing to collaborate on countering US tariffs, instead reaffirming its commitment to diversifying trade partnerships and reducing dependence on China, its largest trading partner.
Deputy Prime Minister Richard Marles on Thursday dismissed the Chinese ambassador’s call for countries to “join hands” on global trade, insisting Canberra would not take sides in broader geopolitical contests, Reuters reported.
The diplomatic exchange comes following a substantial escalation in the US-China trade battle.
On Wednesday, President Donald Trump announced that he would hike tariffs on Chinese goods from 104% to 125%, while temporarily lowering taxes on dozens of other countries.
The move presents both opportunity and risk for Australia, which sends nearly a third of its exports to China, but less than 5% to the United States, according to Reuters.
Trump also imposed a flat 10% tariff on Australian imports—one of the lowest among his reciprocal tariffs—despite Australia being a key US security ally in the Indo-Pacific.
Australia's central bank has cautioned that ongoing global trade tensions, particularly between big economies such as the United States and China, might dissuade company investment and reduce household spending, adding uncertainty to the country's economic outlook.
