Donald Trump spectacularly backflips on global tariffs - what it means for Australia
- Trump won't impose additional tariffs on Australia
- China will be hit with a 125 per cent tariff on exports
- Chinese leaders offered to 'join hands' with Australia
- READ MORE: Why Trump's tariffs on China goods will be good for Aussies
Donald Trump has announced a 90-day pause to his controversial tariff hikes on most countries, raising hopes the Australian stock market could bounce back.
Trump mad the shock delay in his trade strategy overnight following days of tense negotiations with global powers after the tariffs came into effect on the weekend.
The president said all countries which had not retaliated against the US with their own tariff increases would see their tariffs reduced to the minimum 10 per cent until July.
Australia was not affected by the latest announcement as it was already at the 10 per cent level.
When asked why he ordered the pause, Trump told reporters: 'People were jumping a little bit out of line. They were getting yippy.'
The announcement saw US stock markets quickly rally following several days of turmoil, which had fuelled fears of a recession.
Australian stockbrokers are holding their breath for the market to open at 10am in the hopes of seeing a similar turnaround on the ASX.
The Australian stock market suffered a sharp decline since Trump announced the new tariffs in his Liberation Day address last Thursday, with the ASX200 starting this week at its lowest level since late 2023.
US President Donald Trump (pictured) has announced a 90-day pause to his controversial tariffs hikes
The Australian share market on Monday lost $119billion in the worst session since the onset of Covid in March 2020.
The share market plummeted 14.17 per cent since peaking on February 14.
Superannuation and other investment accounts weighted toward shares took a battering, sparking fears of a global recession.
The overnight announcement was a relief for investors, but there is still lingering uncertainty over the effect of the trade war between the US and China.
While other countries saw tariffs moderated, Trump promised to raise US tariffs on Chinese exports to 125 per cent, effective immediately, after the Asian giant had vowed to raise tariffs on US goods to 84 per cent.
'At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other countries, is no longer sustainable or acceptable,' Trump wrote online.
In response, Chinese leaders overnight called for Australia to 'join hands' with China to defend global trade.
It was the first time Chinese officials reached out to Australia since the beginning of Trump's tariff terror.
The US stock market is recovering from days of turmoil following Trump's announcements with AUstralian stockbrokers hoping for a similar result
However, Australian officials may not be inclined to lend China a 'hand' after it imposed an 80 per cent tariff on Australian barley and a 212 per cent tariff on wine in recent years.
Prime Minister Anthony Albanese on Wednesday laughed off claims from Trump that world leaders were sucking up to him in order not to be hit by huge tariffs on their exports.
The US President boasted that prime ministers and presidents have been grovelling to him, pleading to make a deal, ever since he slapped sweeping tariffs on 90 nations, including Australia.
'These countries are calling me up, kissing my ass… they are dying to make a deal,' President Trump told a group of Republican donors at a dinner on Tuesday night.
'They are, they are dying to make a deal. 'Please, please, sir, make a deal. I'll do anything',' he said as his audience laughed.
Mr Albanese, speaking from Cairns as he campaigned for the upcoming election, insisted he's not one of them.
Prime Minister Anthony Albanese (pictured) earlier laughed off claims from Trump that world leaders were sucking up to him
'That's not the way I deal with leaders,' Mr Albanese said.
'I deal as an equal with countries that I engage with ... the two conversations that I've had with President Trump are ones in which I stand up for Australia's national interest.'
The US stock market suffered sharp losses in the wake of the tariff announcement, with the S&P500 retreating to its lowest level since April last year, but had risen sharply in recent days to be approaching its pre-tariff level.
Trump also boasted that he had the 'most successful 100 days in the history of this country' as he pressured many foreign governments into vowing to reduce their barriers to US exports.
