USA-China Tariff Truce or Just More Noise? What Aussie Exporters Should Know

A temporary 90-day trade truce between the US and China has lifted global market sentiment, with both sides slashing tariffs in a rare moment of cooperation. But for Australian businesses, the benefits might be more symbolic than substantial.

Under the new agreement, US tariffs on Chinese goods will drop from 145% to 30%, and China will lower duties on American imports from 125% to 10%. The breakthrough has sparked optimism globally, with markets and commodities rebounding almost instantly.

“This kind of coordinated tariff relief, even if temporary, changes the investment landscape,” said Nigel Green, CEO of financial advisory firm deVere Group.

But here in Australia, where businesses have been navigating choppy waters with China for years, the question is: does this change anything?

Indirect Ripples, Not Direct Relief

Australia wasn’t in the crosshairs of the US-China tariff war, but it has felt the collateral damage — from wine and beef bans to reduced student flows. A more stable China-US relationship could mean stronger demand for Aussie exports like iron ore, coal, and lithium.

“Think of it as a pressure valve being released,” said one trade economist. “It’s not a fix, but it may calm things just enough to give exporters some breathing room.”

Still, the 90-day window is short, and the big issues — like tech controls and national security — remain unresolved. If tensions flare up again, any short-term boost could vanish overnight.

What to Watch

• Commodity exporters may benefit if Chinese manufacturing and infrastructure spending pick up.

• Supply chains could ease slightly if global trade flows improve, helping logistics and transport.

• Small businesses likely won’t feel much unless the truce extends and leads to wider trade stability.

Bottom Line

For now, the truce is a mood shift more than a market changer for Australia. It signals a softer tone between two superpowers — which is good news — but unless it sticks, Aussie businesses should stay cautious.

As Nigel Green put it, “The truce may not last — but it will certainly reignite momentum.”

Just don’t count on it doing the heavy lifting for Australia’s economy.

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