Key Takeaways:

• Australia rebuffs China's proposal to collaborate against US tariffs as trade tensions escalate.
• Canberra emphasizes a focus on national interests and diversification of trade.
• U.S. tariffs on Australian goods remain at 10%, while tariffs on Chinese goods are raised to 125%.

In a decisive move, Australia has declined China's proposal for collaborative action against U.S. tariffs amid escalating trade tensions. This response comes after China's ambassador, Xiao Qian, urged Australia to "join hands" and combat the U.S.'s substantial import taxes, now increased to 125% on Chinese goods.

Deputy Prime Minister Richard Marles stated, “We are not going to be holding hands with China... What we are doing is pursuing Australia's national interests,” reinforcing a strategy focused on diversifying trade away from dependency on China, which remains Australia's largest trading partner. “Our focus is on actually diversifying our trade,” he reiterated during interviews with Sky News.

China's community response mirrored Australia's conviction of national interest, emphasizing the need against what it describes as "hegemonic and bullying behaviour" by the U.S. In his opinion piece, Axios Xiao emphasized cooperation for a fair trading environment, calling for the international community to resist unilateral tariffs.

U.S. President Donald Trump recently indicated that he would temporarily lower tariffs on several countries but proceeded to raise tariffs on Chinese imports further, directly impacting Australia, whose exports to the U.S. stand at less than 5% of total goods.

Amid these developments, Australia's leaders expressed dissatisfaction with U.S. tariffs, maintaining a path of dialogue rather than retaliation. This sentiment is supported by Prime Minister Anthony Albanese, who stated, “Eighty percent of trade does not involve the United States. There are opportunities for Australia and we intend to seize them.” He highlighted ongoing efforts to expand trade relationships with regions including the European Union, India, and the Middle East.

Australia aims to mitigate reliance on China by strengthening ties elsewhere, reflecting a broader strategy to enhance economic resilience. Such initiatives have included recent discussions with trade representatives from nations including Japan and India, as asserted by Australian Trade Minister Don Farrell.

The evolving landscape of trade relations poses both challenges and opportunities for Australia as it navigates its position as a close ally of the U.S., while also maintaining crucial economic ties with China.

For further information, refer to the original articles from SCMP, Reuters, Jakarta Post, and BBC.