Marles says Australia will not unite with China to fight US tariffs
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The news: Deputy Prime Minister Richard Marles said that Australia will not work together with China to counter US tariffs, rejecting an informal proposal from the Chinese ambassador to “join hands” on trade.
The numbers: Trump raised duties on China to 125% effective immediately on Wednesday, while also announcing a 90-day pause on reciprocal tariffs for most trade partners (excluding China) and lowering the reciprocal tariff rate during this period to 10%.
The context: China's ambassador to Australia, Xiao Qian, penned an opinion column in The Age on Thursday, urging Canberra to collaborate with Beijing in the face of escalating trade tariffs.
"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," Xiao wrote.
Speaking to Sky News later on Thursday, Marles said "We are not going to be holding hands with China in respect of any contest that is going on in the world…We obviously don't want to see a trade war between China and the US…[but] it's about pursuing Australia's national interests, not about making common calls with China."
Marles added that Australia would pursue its national interests and build its economic resilience by strengthening trade ties with the EU, Indonesia, India, Britain and the Middle East.
Prime Minister Anthony Albanese also brushed off the suggestion of uniting with China on the issue, calling instead for collaboration with the country on the trade front, "Our trade relationship with China is an important one. Trade represents one in four of Australian jobs and China is by a long distance our major trading partner,” he said.
Modelling from the Treasury and RBA suggests that China’s exposure to Trump’s tariffs is the central way Australia will be impacted by the trade war. Should China not sufficiently stimulate its own economy and prop up demand Australia’s exports could be hit. China’s leadership is meeting today to discuss additional economic stimulus to support the economy.
