Australia needs China amid global tariff tensions

The 2025 Australian federal election occurs at a pivotal moment, as the country navigates the complexities of global alliances, economic resilience and domestic priorities. Amid escalating US-China tensions, resurgent protectionism, and climate crises, the election is sure to shape Australia's geopolitical alignment and policy trajectory.

Australian Prime Minister Anthony Albanese's Labor Party government faces scrutiny over trade disputes and cost-of-living pressures, while opposition leader Peter Dutton's Coalition positions itself as a defender of economic security. Moreover, Australia's economic interdependence with China looms large, testing the political parties' strategies to ensure economic growth and improve the deteriorating living standards.

The reimposition of US tariffs on Australian steel and aluminium in 2024 has strained Canberra-Washington relations. After US President Donald Trump declared a US economic emergency and announced tariffs of at least 10 percent for all countries on April 2, Australian Prime Minister Anthony Albanese said that the decision to impose a 10 percent tariff on its ally was "not the act of a friend", but ruled out reciprocal tariffs against the US. In comments outside the White House, Trump singled out Australian beef, which saw a surge in exports to the United States last year, reaching A$4 billion amid a slump in US beef production.