Defence Minister Rejects More Australian Trade With China
Following Donald Trump’s so-called “Liberation Day,” China now faces a staggering 125 per cent tariff hike. In response, China increased its tariffs on imported US goods to 84 per cent. Chinese Ambassador to Australia Xiao Qian has called for increased Australian trade with China.
According to the Sydney Morning Herald on Thursday, Chinese Ambassador Xiao Qian suggested the whole world to “jointly resist” to stop the “bullying behaviour of the US.”
What It Means for Australia
Australia has only been subject to a ten per cent tariff, making it unlikely to be directly affected by Trump’s tariffs.
Economists are saying the real threat to Australia isn’t the tariffs. However, the trade war between the US and China may create global economic instability that could affect Australia.
The Chinese Ambassador said China is ready to “join hands” with Australia in response to the changes. He spoke of multilateral trade to maintain global economic stability.
Australia Responds
Defence Minister Richard Marles responded, rejecting the offer.
“We’re not about to make common cause with China, that’s not what’s going to happen here,” Mr Marles said.
Marles said Australia’s focus would be on diversifying trade. Prime Minister
Anthony Albanese also weighed in on the issue, saying Australian trade with China was important, but that Australia “will speak for ourselves.”
Trump Pauses Tariffs
Despite chaos in the markets, Trump has doubled down on his trade war with China.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125 per cent, effective immediately,” Mr Trump wrote on Truth Social.
US Secretary of the Treasury Scott Bessent has said the US will cooperate with trading partners who don’t retaliate.
Sources:
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