Prime Minister Anthony Albanese has knocked back a Chinese offer to “join hands” and “jointly resist” American tariffs, following President Donald Trump’s abrupt backdown.

The Trump administration announced overnight (Australian time) that it would wind back tariffs on the imported goods of many countries to 10 per cent for 90 days, while raising the levy applied to China to 125 per cent.

Australia’s tariffs remain the same because it was already subject to a baseline 10 per cent levy, but it does open the door to reignite negotiations with the Trump administration.

“The best deal is zero and that’s what we are continuing to put forward,” Albanese told reporters in far north Queensland on Thursday.

“The US administration changes its position on a regular basis, and on that fact, we need to make sure that Australia is considered in the way that we go forward.”

Opposition Leader Peter Dutton said Trump’s latest backflip reflected his “volatility”, adding that if he became prime minister he would talk to the president about the US-Australia relationship and opportunities for expansion through sectors such as critical minerals.

“I will work with whoever the American president is, I will deal with whatever comes at our country and I’ll make the right decisions and the tough decisions that need to be made to keep us safe and to make sure that we’re a strong economy,” he told reporters in Melbourne.

China and the US have continued to apply escalating reciprocal tariffs and Beijing has asked Australia to “join hands” and respond together, according to reports in the Nine newspapers.

China’s ambassador to Australia, Xiao Qian, wrote an opinion article for Nine newspapers on Thursday and said the only way to stop the “hegemonic and bullying behaviour of the US” was to “jointly resist”.

“In the face of the bottomless behaviour of the US, which has arbitrarily politicised and weaponised economic and trade issues, a weak compromise will only allow the US to sabotage the international order and rules even more wantonly, dragging the world economy, which has already embarked on the right track of a stable recovery, into a quagmire and an abyss,” wrote Xiao.

“The international community, including China and Australia, should firmly say no to unilateralism and protectionism, join hands to defend the multilateral trading system, safeguard a fair and free trading environment and promote the development of economic globalisation in the direction of greater openness, inclusiveness, universality and balance.”

However, when Albanese was asked if Australia would “join hands” with China, his response was brief.

“We will speak for ourselves. Australia’s position is that free and fair trade is a good thing,” he said.

Albanese also said the government was prepared for Trump’s tariffs, and took aim at the approach of Dutton, who has suggested that defence be put on the negotiating table.

“Some of the decisions in our region confounded people who were involved in the negotiations,” Albanese said.

“That is why you have to be an adult, not dial it up to 11 at every opportunity, which is what Peter Dutton’s plan is on everything.”

Deputy Prime Minister Richard Marles said Australia was “not about to make common cause with China”.

More than 75 countries have made contact with the US to discuss the trade measures and the 90-day pause will allow Trump to engage in “bespoke” negotiations with these nations, US treasury secretary Scott Bessent said.

Some Australian external territories, including the Heard and McDonald Islands — which have no human inhabitants — and Norfolk Island had also been slapped with tariffs higher than 10 per cent.

“Some of the decisions in our region confounded people who were involved in the negotiations,” Albanese said.

“That is why you have to be an adult, not dial it up to 11 at every opportunity, which is what Peter Dutton’s plan is on everything.”

Australian shares surged on the backdown, up 4.71 per cent in early trade on Thursday.

With Australians heading to the ballot box on May 3, the major parties’ responses to the tariffs are likely to weigh on voting decisions.

-with AAP