[By Guancha Observer Network, Ruan Jiaqi]

Local time on April 2nd, the so-called "reciprocal tariff" that US President Trump had been hyping up finally came into effect, with all trading partners of the United States being levied a 10% "minimum baseline tariff". This left Australia, a key ally in the Indo-Pacific region, quite dissatisfied. However, between "humiliation" and "anger", Australia chose to be "humiliatedly angry".

According to reports by the Australian Broadcasting Corporation (ABC) and Reuters on March 3rd, Australian Prime Minister Albanese stated on Thursday that all American goods entering Australia are duty-free, therefore the US's imposition of tariffs on Australia is "illogical" and "not the way friends should treat each other." However, he clearly ruled out the possibility of retaliatory counter-tariffs against the US.

The ABC pointed out that according to the US-Australia trade agreement which has been in effect since 2005, Australia has not imposed tariffs on American products for decades.

In response to this, Albanese said at a press conference, "These tariffs were not unexpected, but let me make one thing clear, they are completely unreasonable." He added, "The tariffs imposed by the Trump administration are illogical and go against the foundation of our partnership. This is not how friends should treat each other."

"There is no doubt that the US approach on a series of issues, whether it be climate action or trade issues, will affect strategic competition in the region," emphasized Albanese. He stressed that today's decision by Trump will have "consequences" for how Australia reviews its relationship with the US.

Regarding possible measures Australia might take, Albanese denied the possibility of imposing reciprocal tariffs on the US, saying such actions would increase daily costs for Australian households. He said, "We will not engage in a race to the bottom, which leads to price increases and slower growth." After the US imposed a 25% tariff on imported steel and aluminum in March, Australia also stated it would not impose retaliatory tariffs on the US.

Albanese also told reporters that Australia will seek negotiations with the US to cancel the tariffs, while considering initiating dispute resolution mechanisms under the bilateral free trade agreement.

According to Albanese, the existing free trade agreement between the US and Australia contains dispute resolution mechanisms. Although Canberra hopes to resolve issues without resorting to these means, ABC reported the day before (March 2nd) that the Albanese government is preparing to sue the US at the World Trade Organization (WTO), accusing the US of violating the trade agreement between the two countries.

According to ABC reports, Albanese announced on the same day that emergency funding support of 50 million Australian dollars would be provided to affected industries, strengthening anti-dumping rules to protect products such as steel. Additionally, a new "economic recovery plan" will provide zero-interest loans worth 1 billion Australian dollars to help businesses explore new export opportunities and ensure the government prioritizes purchasing from domestic Australian enterprises in procurement.

Local time on April 3rd, Australian Prime Minister Albanese responded to US tariffs at a press conference. Video screenshot.

Australian media noted that despite levying the lowest tier of tariffs on Australia, Trump specifically mentioned his dissatisfaction with Australia's ban on American beef during his speech at the White House Rose Garden.

He complained, "Australia is good, but they banned American beef. However, last year alone, we imported $3 billion worth of Australian beef from them."

"They don't accept our beef. They don't want it because they don't want to affect their farmers, I understand that." The next sentence, Trump revealed his threatening fangs, "But now we will do the same thing, starting tonight at midnight."

According to Reuters, since the first case of mad cow disease was discovered in the US in 2003, Australia has stopped importing American beef to this day.

According to UN data, meat products are Australia's largest export to the US in 2024, valued at over $4.03 billion. An ANZ Bank report shows that approximately 4.5% of all beef consumed in the US comes from Australia, mainly used for making hamburgers.

Video screenshot.

In response to Trump's "named criticism", Albanese emphasized at the press conference that Australia will not lower its biosecurity standards to avoid tariffs. He said that due to Australia's insistence on requiring US imported meat to meet its biosecurity standards, negotiations on beef tariffs between the two countries have stalled.

"We have made it clear to the US that we will not compromise on biosecurity," he said. "We will not weaken the measures used to protect our farmers and producers from disease or contamination risks."

When asked if Trump's remarks meant that Australian beef would be banned from entering the US, Albanese reiterated that Trump's decision imposes a 10% tariff on all Australian goods entering the US.

This Australian prime minister also tried to downplay the impact of US tariffs on the country's economy. He said that in Trump's "liberation day" tariffs, "no country has been treated better than Australia", and exports to the US account for only 5%, thus having limited direct impact on the domestic economy. "Of course, this does not mean that tariffs are good," he added.

The day before, Albanese also expressed similar views. At that time, he also mentioned that efforts to diversify trade relations in the Asian market would help protect local businesses in Australia.

According to a report by The Australian Financial Review on March 2nd, Albanese said, "If you look at Australia's future economic development and opportunities, Indonesia will become the world's fourth-largest economy. India will develop into the world's third-largest economy, and these relationships have not been fully developed... (and) restoring trade with China, where the Chinese market accounts for nearly a quarter of our total exports."

Australian Trade Minister Farrell also told Reuters that Australia is exploring new export markets in India and the Middle East and will seek to restart free trade negotiations with the EU. Last year, these negotiations also stalled due to issues regarding Australian beef access.

"The world has changed," he remarked.

This article is an exclusive contribution by the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7488955764090929715/

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