US President Donald Trump has announced a 90-day pause on most “reciprocal” tariffs, reducing the rate to 10 per cent for imports from most countries.
However, China is now facing increased tariffs of 125 per cent, after Trump accused Beijing of showing a “lack of respect” following its announcement of retaliatory tariffs on 84 per cent of US imports.
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This decision comes after global markets reacted to Trump’s initial tariff announcements, prompting mixed responses internationally.
European Union member states had previously voted to implement retaliatory tariffs, but these have been put on hold due to the 90-day pause.
China, which faces the increased tariff rate, delivered a clear message last weekend: “China is well prepared to weather a trade war – and come out stronger on the other side.”
For Australia, the impact is nuanced. Australian goods were already subject to the minimum 10 per cent tariff rate under previous measures, so the pause does not change their status.
However, the heightened tariffs on Chinese imports could affect Australian businesses that rely on Chinese goods, potentially leading to increased costs.
Prime Minister Anthony Albanese has emphasised a measured response, advocating for a return to zero tariffs.
When asked whether Australia would “join hands” with China, Albanese dismissed the idea, stressing that Australia would “speak for ourselves.”
“Our trade relationship with China is an important one. Trade represents one in four Australian jobs, and China is by a long distance our major trading partner,” he said.
“These trade issues affect 20 per cent of the global market. Eighty per cent of trade does not involve the United States. There are opportunities for Australia, and we intend to seize them.”
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