Prime Minister Anthony Albanese ducks invitation to ‘hold hands’ with China on tariffs

Prime Minister Anthony Albanese has ducked an invitation from China to “hold hands” against US tariffs, but says Canberra will seek more business around the world as trade dynamics rapidly shift.

Overnight, US President Donald Trump announced a 90-day pause for countries hit by higher US tariffs and authorised a lower rate of ten per cent during negotiations.

But a trade war with China dramatically escalated as Washington lifted tariffs on goods from China to 125 per cent, accusing Beijing of a “lack of respect” after it imposed tariffs of 84 per cent on US imports in a retaliatory move.

China’s Ambassador to Australia, Xiao Qian, has appealed to Canberra and the wider international community to work together to defend the multilateral trading system.

“The only way to stop the hegemonic and bullying behaviour of the US in harvesting the whole world is to strengthen solidarity and collaboration and to jointly resist,” he said in the Sydney Morning Herald.

“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, resolutely uphold international equity and justice, defend the multilateral trading system.”

But asked in Queensland if he would accept the offer to join hands, Mr Albanese avoided the risk of getting caught in the middle of an escalating spat between the world’s two largest economies.

“We will speak for ourselves, and we speak for ourselves. And Australia’s position is that free and fair trade is a good thing,” he said.

But he stressed that Australia’s relationship with Beijing was “an important one.”

“Trade represents one in four Australian jobs, and China is, by a long distance, our major trading partner.

“We, of course, restored in excess of $20 billion of trade exports to China, where there were impediments, I think there is a lot of opportunity to grow tourism, in particular from the Chinese market,” Mr Albanese said.

The overnight developments do not change Australia’s situation, with all exports still facing a ten per cent tax, and Mr Albanese insisted Canberra would take a “considered, calibrated, clear position” on negotiations to abolish the tariff altogether.

“No one has a better deal than Australia at 10 per cent now,” he said, repeating his view the new tariff regime overall was an “act of self-harm” by the Trump administration.

“It’s quite clear from the response of the markets that that announcement is doing harm to the United States, is doing harm to its prospects of employment, inflation, all of those key figures as well. We’ll continue to advocate that Australia’s tariff rate should be zero.”

The Prime Minister said he was speaking regularly with Ambassador to Washington Kevin Rudd and engaging with the US “in a diplomatic way, not with a loudhailer.” He added that the situation was changing daily and required a considered approach.

“The best deal is zero, and that’s what we are continuing to put forward, very strongly, using every avenue at our disposal,” he said.

“You have to be an adult, not dial it up to 11 at every opportunity, which is what Peter Dutton’s plan is on everything and just to say the first thing that comes in your head.

“What you need to do in dealing with the United States or dealing with other diplomatic relations as well, is to be consistent and considered.”

Asked whether he would be willing to “hold hands” with China if elected, Opposition Leader Peter Dutton also side-stepped the question.

“Australia should have a very strong trading relationship with China. It’s in our mutual interest,” he said.

“I’ve always been very strongly supportive of enhancing and advancing that trading relationship.

“And I was part of a government that negotiated the free trade agreement with China. It’s good for Australian jobs and for our industry, and we should be doing everything we can to provide encouragement to expand that relationship.

“But at the same time, we can have a rock solid relationship with the United States when it comes to our security.”