Australia Urges US-China Trade Resolution, Awaits Response On Tariff Exemption

Australia's trade minister, Don Farrell, said on Thursday the government has done all it can to secure an exemption from broad U.S. tariffs, and it's now up to President Donald Trump to respond.

Last month, Trump chose not to exempt Australia from a 10% tariff on most imports, adding strain to U.S.-Australia ties already affected by earlier 25% tariffs on steel and aluminum.

"We have an offer into the United States and we're waiting for a response from them. So we've done everything on our side of the equation that we can do," he said, News AU reported. "It's now up to the United States to respond and say, 'Look, we accept your offer, we reject your offer, or we think it should be something different'."

Australia calls for U.S.-China trade resolution

Farrell stressed the importance of the U.S. and China resolving their trade disputes, noting that ongoing tensions could seriously impact Australia's economy. Australia relies heavily on China, its top trading partner, with two-way trade reaching $325 billion in 2023–24.

A slowdown in China could drive up import costs and reduce demand for Australian raw materials. Farrell warned that the 145% U.S. tariff on Chinese goods threatened trade flows and could hurt Australian exports that feed into Chinese manufacturing.

He emphasized the need for stability and reaffirmed Australia's commitment to free and fair trade, as U.S. and Chinese officials prepare to meet in Switzerland for trade discussions.

Trump's film tariff proposal raises concerns

Trump recently proposed a 100% tariff on foreign-made films, calling foreign incentives a threat to U.S. national security and claiming the American movie industry is rapidly declining. The move alarmed Australia's film industry, which has seen a boom in U.S. productions due to lower costs post-COVID.

At a Milken Institute conference, Australia's U.S. Ambassador Kevin Rudd questioned how such a policy would work, joking about taxing Bluey, the globally popular Australian children's show. He warned that retaliatory film tariffs could harm cultural exchange.

Rudd also joked about tariffs being placed on the Heard and McDonald Islands, remote Australian territory known for penguins, referencing the film "Happy Feet," adding that a sequel, "Unhappy Feet," would feature a penguin protest in Washington.