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Australia has decisively turned down a proposal from Beijing to unite against rising U.S. tariffs, underscoring its strategy to reduce economic dependence on China while strengthening trade partnerships across the globe.
The diplomatic suggestion came from China’s ambassador to Australia, Xiao Qian, who, in an op-ed for The Age newspaper, called for the two nations to “join hands” in defending the multilateral global trading system amid escalating trade tensions between China and the United States.
“Under the new circumstances, China stands ready to join hands with Australia and the international community to jointly respond to the changes of the world,” Ambassador Xiao wrote.
However, Australia’s Deputy Prime Minister and Defence Minister Richard Marles was quick to dismiss the proposition, emphasizing that Australia would act based on its own national interests. Speaking to Sky News, Marles said, “We are not going to be holding hands with China in respect of any contest that is going on in the world. What we are doing is pursuing Australia’s national interests and diversifying our trade around the world.”
Australia has increasingly sought to broaden its trade ties beyond China, its largest trading partner. Marles outlined a clear plan to bolster relationships with regions including the European Union, India, Indonesia, the United Kingdom, and the Middle East.
The backdrop to this development is a sudden escalation in the ongoing U.S.-China trade war. In a dramatic move, U.S. President Donald Trump on Wednesday announced a temporary easing of tariffs for several countries but sharply increased duties on Chinese goods — from 104% to 125%. Australia was not spared, facing a 10% tariff under Trump’s broader tariff strategy, despite its close security alliance with the U.S.
Prime Minister Anthony Albanese criticized the new tariffs, saying the 10% duty on Australian exports to the U.S. “has no basis in logic.” However, he clarified that Australia would not retaliate with countermeasures.
While nearly one-third of Australia’s exports go to China, shipments to the United States make up less than 5% of its total goods exports. Experts warn that the increasing trade uncertainties could have broader economic repercussions. The Reserve Bank of Australia has already expressed concern that tariff-related instability might discourage business investment and dampen household spending.
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