Australia doesn’t trade a lot with the USA anyways, so they are shrugging even if you forget the penguins on McDonald island. Australia exports a lot of stuff to China though, primarily raw resources, and are trying to diversify away from China (and trade with Europe, the Middle East, Africa), but I get the feeling, unless they actually decide to make stuff in Australia again, China will remain the biggest market for their natural resources.
Unsurprising given China's previous bullshit towards Australia:<p><pre><code> In early 2020, Prime Minister Scott Morrison endorsed an inquiry into the origins of COVID-19, which angered China
Following this, China started imposing import tariffs on some Australian exports. China gave a range of reasons for the tariffs. China denied that the tariffs were related to Scott Morrison's actions</code></pre>
Showing no response towards these tariffs will not be rewarded. It's going to be interpreted as a sign of weakness. Australia is making a bad bet here.