The United States has paused its “reciprocal” tariffs for 90 days, recently securing agreements with several countries, including the UK, China, Vietnam, Indonesia, the Philippines, Japan, and now the European Union. However, Australia has yet to finalise any deal ahead of the looming deadline this Friday.
Currently, Australia faces a standard tariff rate of 10%, but the future of this rate remains uncertain as the deadline approaches. In a recent statement, Donald Trump indicated plans to send out letters to approximately 200 countries, outlining various tariff rates. He remarked, “You’re going to pay 10%, 15%, or potentially less, but I don’t know.”
In response to the unfolding developments, Trump expressed enthusiasm about increased beef sales to Australia, asserting that US beef is “the safest and best in the entire world.” His previous tariffs have created volatility in financial markets, drawing criticism, particularly from Australian Prime Minister Anthony Albanese.
Amidst this uncertainty, discussions are also ongoing between the US and China. In April, Trump implemented a significant 145% tariff on Chinese imports, prompting a retaliatory 125% tariff from Beijing. Following these events, China has sought to enhance trade ties with Australia. During a recent state visit to China, Albanese highlighted the importance of cooperation amid a growing trend of protectionism worldwide.
Chinese Premier Li Qiang affirmed the commitment between China and Australia to promote trade and investment liberalisation, signalling a shared goal of advancing economic ties despite the current global climate of rising tariffs and trade barriers.