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Australia Helping to Break China

Posted April 11, 2025

Matt Insley

By Matt Insley

Australia Helping to Break China

First today, a reader note on our ongoing coverage of the fallout from the devastating wildfires in Los Angeles…

“Interesting,” writes Joel G., “you bring up the Palisades wildfires.

“I was in the thick of it, and stayed put near a reservoir that was, thankfully, full and allowed helicopters and bulldozers to establish a firebreak. Just a block or two away, I could see those areas getting burned to the ground.

“I got a call from a friend [living] in another part of California who asked me a good question: Would rebuilding take a long time?

“After Trump’s visit to Los Angeles, waiving all federal permits during a televised meeting with the mayor and others, there was much optimism. So far, the mayor has not kept her promise to expedite permits.

“Having worked with the L.A. Mayor’s Office many years ago, I would estimate 2-3 decades to return to business as usual.

“In all fairness to the overpaid DEI hire at the DWP, it would likely take divine intervention to get anything done in fewer than 18 months.

“Plus, it’s almost impossible to force out a DEI/DWP hire. Take your pick: $700,000 for security versus $7 million to pay off a lawsuit.

“Los Angeles has a long history of political corruption, both Republicans and Democrats, going back over a century. But they put up with it, knowing it will eventually be their turn to feed at the money trough.”

Many thanks to our correspondent today for his eyewitness — albeit bleak — firsthand account.

Moving on, Australia has made it clear it won’t team up with China to push back against U.S. tariffs, further reinforcing our trading pro Enrique Abeyta’s tariff thesis.

Your Rundown for Friday, April 11, 2025...

Australia Rejects China's Trade-Alliance Offer

Deputy Prime Minister Richard Marles didn’t mince words yesterday when he said Australia won’t be “holding hands” with China in any global trade battles.

China, of course, isn’t thrilled. Its ambassador to Australia, Xiao Qian, called on Canberra to join forces with Beijing to defend global trade.

But Australia flat-out rejected the idea, showing it has no interest in being caught in the middle of a power struggle between the U.S. and China.

Although China is Australia’s No. 1 trading partner — buying nearly a third of Australia’s exports — the risk of depending too much on Beijing is becoming impossible to ignore.

Trump’s decision to raise tariffs on Chinese goods to an eyewatering 145% has sent a loud and clear message: The U.S. isn’t backing down from holding China accountable for economic aggression.

Australia is now focused on diversifying trade relationships and building stronger ties with partners including India, Indonesia, the EU and the Middle East.

Even so, Trump’s tariffs haven’t spared Australia entirely. The U.S. imposed a 10% tariff on Australian imports — lower than what other countries face but still frustrating for Australian leaders.

Prime Minister Anthony Albanese called the move illogical but chose not to retaliate, likely because maintaining strong ties with the U.S., a key security ally, is more important in the long run.

But for those who back Trump’s approach, these tariffs are seen as a necessary sacrifice to challenge China’s dominance and level the playing field.

By rejecting China’s offer and focusing on new trade partnerships, Australia is charting a course that aligns with Trump’s vision: breaking Beijing’s influence.

Market Rundown for Friday, April 11, 2025

The S&P 500 is down 3.46% to 5,268.05.

Oil’s up 0.37 % to $60.29 for a barrel of WTI.

Gold is up 2.13% to $3,245.30 per ounce.

And Bitcoin’s up 3.06% to $82,025.62.

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