BREAKING: Australia Rejects China’s Offer to Unite Against US Tariffs, Focuses on Diversifying Trade
Australia has firmly rejected a proposal from Beijing to collaborate on countering US tariffs, instead reaffirming its commitment to diversifying trade partnerships and reducing dependence on China, its largest trading partner.
Deputy Prime Minister Richard Marles on Thursday dismissed the Chinese ambassador’s call for countries to “join hands” on global trade, insisting Canberra would not take sides in broader geopolitical contests.
“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.
“We are not doing that. What we are doing is pursuing Australia’s national interests and diversifying our trade around the world.”
Australia will focus on strengthening trade ties with the European Union, India, Indonesia, Britain, and countries in the Middle East, Marles said, as part of a long-term effort to build economic resilience.
His remarks came in response to an opinion piece by China’s ambassador to Australia, Xiao Qian, published in The Age. In the article, Xiao urged Canberra to partner with Beijing in defending the multilateral trading system amid what he called a “new” global environment.
“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.
The diplomatic exchange follows a significant escalation in the US-China trade war. On Wednesday, President Donald Trump announced he would raise tariffs on Chinese imports from 104% to 125%, even as he temporarily eased duties on dozens of other countries.
The move presents both opportunity and risk for Australia, which sends nearly a third of its exports to China, but less than 5% to the United States.
Trump also imposed a flat 10% tariff on Australian imports—one of the lowest among his reciprocal tariffs—despite Australia being a key US security ally in the Indo-Pacific.
Prime Minister Anthony Albanese criticised the tariff decision, calling it one that “has no basis in logic,” but said his government would not retaliate.
Australia’s central bank has warned that continued global trade tensions—especially between major economies like the US and China—could deter business investment and dampen household spending, adding uncertainty to the country’s economic outlook.
