Australia says ball in Washington’s court on tariff negotiations

Australia’s trade tsar has made a big call on Washington as tariff talks grind on, saying “we’ve done everything that we can do”.

Australia’s trade tsar says Labor has done “everything” it can to secure an exemption from blanket US tariffs and it is now up to the Trump administration to “accept”.

Donald Trump decided not to exclude Australia from baseline 10 per cent imposts on most foreign goods last month.

It dealt another blow to Canberra’s relationship with Washington, which was already bruised on the back of Australia’s inclusion in 25 per cent tariffs on steel and aluminium.

Don Farrell, who has spearheaded trade talks, said on Thursday the ball was in the US President’s court.

Trade Minister Don Farrell says the ball is in Washington’s court when it comes to tariff talks. Picture: Jason Edwards / NewsWire

“We have an offer into the United States and we’re waiting for a response from them,” the Trade Minister told Nine’s Today.

“So we’ve done everything on our side of the equation that we can do.

“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’.”

Senator Farrell also said it was “absolutely vital that the United States and China resolve their issues regarding tariffs”.

Treasury officials and economists have long warned that Australia is vulnerable to a US-China trade.

China is Australia’s largest trading partner, with two-way trade hitting $325bn over the 2023-24 financial year.

A further downturn in the Chinese economy could push up the prices of Chinese goods coming into Australia and reduce the demand for Australia’s raw materials going into China.

US President Donald Trump has slapped tariffs of 145 per cent on Chinese goods. Picture: Jim Watson / AFP

“The Chinese are subject to a 145 per cent tariff, and that potentially kills stone dead exports from China into the United States,” Senator Farrell said.

“China is our largest trading partner, and we supply them with a lot of the raw material that ends up going into products that are sold around the world but in particular to the United States.

“It’s absolutely vital for our interests that China and the United States resolve their issues and we get back to some normalisation.

“Australia supports free and fair trade.”

Both the US and China have confirmed that officials would meet in Switzerland over the weekend for trade talks.

‘Tax on Bluey’

Mr Trump earlier this week proposed slapping 100 per cent tariffs on foreign-produced films, sending a shockwave through Australia’s screen industry.

In a social media post on Monday, the US President claimed the “Movie Industry in America is DYING a very fast death” because of foreign incentives and declared it “a National Security threat”.

Australia has benefited greatly from a surge in interest from American filmmakers since the Covid-19 pandemic largely due to lower production costs.

Speaking at conference hosted by the Milken Institute, Kevin Rudd questioned how such a policy would work and joked about taxing Bluey – the ABC children’s program that has been a hit around the world.

Australian ambassador to the US Kevin Rudd has joked about a ‘tax on Bluey’ after Mr Trump proposed tariffs on foreign films. Picture: NewsWire / Martin Ollman

“I don’t think we want to see a tax on Bluey,” Australia’s ambassador to the US said.

“What happens if we all lock down our countries with competitive, punitive arrangements against each other’s movies?

“Movies are the way in which we kind of understand each other more, so I’d be all for opening this up.”

He also joked about the US administration’s imposition of tariffs on the Heard and McDonald Islands.

It is an Australian external territory made up of mostly barren Antarctic islands that are home to an abundance of penguins.

“If you’ve seen the other great Australian movie, Happy Feet … those penguins of ours have just been tariffed down in (Heard and McDonald Islands) in Antarctica,” he said.

“They’re producing a sequel, it’s called Unhappy Feet. There’ll be a march of penguins on Washington.”

‘Mood has changed’

With trade with the US rocky and worrying signs coming out of China, the Albanese government has been looking to diversify Australia’s trading partners.

Among the deals being pushed is a new free trade agreement with the European Union and a critical minerals deal with India.

Scrapping the $5.2bn luxury car tax was reportedly put on the table.

Speaking later to Sky News, Senator Farrell did not go into the exacts but said Labor would “make a sensible offer to the Europeans”, adding that he had already spoken with his EU counterpart Maros Sefcovic since the federal election.

“We’ve indicated that we think it’s important for those countries in the world that believe in free and fair trade, those countries that want tariffs removed, work together, and I’m very keen to restart negotiations,” he said.

“I have a sense that the mood has changed, certainly in Australia, but also in Europe, that we have to find friends who believe in free trade.

“And I’m very confident that with sensible discussions with this new man in the EU that we can make some progress and very quickly come to a settlement on a free-trade agreement.”

Originally published as Australia says ball in Washington’s court on tariff negotiations