Australian Deputy Prime Minister and Defence Minister Richard Marles speaks during a tour of the Sheffield Forgemasters site, where steel used in defence programmes including a future fleet of nuclear-armed submarines is manufactured, in Sheffield, Britain, July 13, 2024. REUTERS/Temilade Adelaja/Pool/File Photo
Australia Rejects China’s Proposal for United Trade Response Against U.S. Tariffs
April 10, 2025 — CANBERRA — Australia has rejected a proposal from China to collaborate on countering U.S. tariffs, emphasizing its commitment to pursuing independent trade policies and reducing reliance on its largest trading partner.
Deputy Prime Minister Richard Marles dismissed the suggestion from China’s ambassador to “join hands” on trade matters, asserting that Australia would instead focus on its national interest and a broader strategy of trade diversification.
Australia Emphasizes Trade Diversification Strategy
“We are not going to be holding hands with China in respect of any contest that is going on in the world,” Marles told Sky News on Thursday. “We are not doing that. What we are doing is pursuing Australia’s national interests and diversifying our trade around the world.”
Marles outlined plans to enhance economic resilience by deepening trade relations with partners such as the European Union, Indonesia, India, the United Kingdom, and the Middle East.
China Appeals for Joint Response to Global Trade Shifts
In an opinion piece published in The Age, Chinese Ambassador to Australia Xiao Qian called on Australia to collaborate with China to protect the global multilateral trading system. “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.
His remarks followed a significant policy shift by U.S. President Donald Trump, who on Wednesday announced a temporary easing of tariffs for dozens of countries while sharply increasing tariffs on Chinese goods—from 104% to 125%. The move further escalated tensions in the ongoing trade conflict between the world’s two largest economies.
Potential Impact on Australian Trade
Australia exports nearly one-third of its goods to China, making it highly exposed to fluctuations in Chinese demand and trade dynamics. By contrast, exports to the United States account for less than 5% of Australia’s total goods exports, highlighting a significant trade imbalance between Australia’s two largest strategic partners.
Despite the imposition of a new 10% tariff on Australian goods by the United States—part of a wider policy of reciprocal import duties—Prime Minister Anthony Albanese has stated that his government will not retaliate. He described the U.S. tariff decision as lacking a logical basis but reaffirmed Australia’s commitment to maintaining strong bilateral relations with the United States.
Economic Outlook and Risk Assessments
Australia’s central bank has warned that ongoing trade disputes between major economies could create uncertainty for domestic business investment and consumer spending. The Reserve Bank highlighted the risks that global trade restrictions pose to economic stability and long-term growth.
In this context, Canberra’s decision to resist alignment with either side in the escalating U.S.–China tariff conflict reflects a broader strategic objective to balance geopolitical interests with economic resilience.
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