No Alliance with China: Australia Distances Itself from Trump Tariff War
- Great Britain International Affairs North America South China Sea
Shreya Naskar- 0
- 3 minutes read
Australia has declined China’s proposal to form a united front against US President Donald Trump’s tariffs, with Defence Minister Richard Marles stating that Australia won’t be joining hands with China. This decision comes as Australia faces a 10% tariff on its goods exported to the US, while China is Canberra’s largest trading partner. The ongoing trade tensions between the US and China have led to a complex global trade landscape. In response to Trump’s tariffs, China has urged its trading partners, including Australia, to join forces in defending global trade. However, Australia has chosen not to align itself with China, instead focusing on diversifying its trade. Marles emphasized that Australia’s priority is to avoid being drawn into the trade war between the US and China. “We’re not about to make common cause with China, that’s not what’s going to happen here. I don’t think we’ll be holding China’s hand,” he said. Australia’s decision to distance itself from China reflects its desire to maintain a delicate balance in its relationships with the US and China.
Recently, Trump announced a 90-day pause on the highest tariffs imposed on most countries, citing concerns that the stock market was becoming nervous. However, this pause does not apply to China, on which Trump has doubled down, increasing tariffs to 125%. The US levies on Australia will remain unchanged despite the pause, except for some islands, such as Norfolk Island, which will receive relief. The ongoing trade tensions between the US and China have significant implications for global trade. The pause in tariffs has led to a relief rally in global stocks, with the S&P 500 and Nasdaq Composite Index experiencing their largest daily percentage gains in over a decade. However, the long-term impact of Trump’s tariffs on global trade remains uncertain. China has responded to Trump’s tariffs by increasing additional duties on American goods to 84% and imposing restrictions on 18 US firms, mostly in defense-related industries. The Chinese equity market has shown resilience, with the CSI300 blue-chip index rising 1.6% and the Hang Seng Index increasing 3.3%. Australia’s decision to diversify its trade reflects its desire to reduce its reliance on any one trading partner. The country is exploring new trade agreements, including with the UK and India, to mitigate the impact of Trump’s tariffs. Australia’s rejection of China’s proposal for a united front against Trump’s tariffs highlights the complexities of global trade in the current environment. As trade tensions between the US and China continue, countries like Australia are navigating a delicate balance between maintaining relationships with key trading partners and avoiding entanglement in the trade war.
