The US president has wound 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, as it was already subject to a baseline 10 per cent levy in the first week of the federal election campaign.
Asked if Mr Trump's decision changes anything for the nation, Deputy Prime Minister Richard Marles said it would not.
"No, and nor does our policy (change)" he told Nine's Today show on Thursday.
"We would prefer there's no tariffs between Australia and the United States and we'll continue to make that case."
The tariff pause comes after more than 75 countries made contact with the US to discuss the trade measures, the president said, which could hint that he's willing to open the door to negotiations.
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.
But Mr Marles said Australia was "not about to make common cause with China".
"We don't want to see a trade war between America and China, to be clear, but our focus is on diversifying our trade."
When Australians go to the ballot box on May 3 the major parties' responses to the tariffs are likely to weigh on voting decisions.
Opposition Leader Peter Dutton said Mr Trump's latest backflip reflected his "volatility", adding that if he becomes prime minister he will talk to the president about the US relationship with Australia and opportunities for expansion through sectors like critical minerals.
"We need to be able to have the strength to stand up for our position, to argue and negotiate the best outcome for Australia," he told 2GB on Thursday.
"Australia is and should always be seen as a reliable partner."
Meanwhile, Treasurer Jim Chalmers and his opposition counterpart Angus Taylor clashed over mounting spending, claims of secret cuts and falling living standards in the first treasurers' election debate on Wednesday night.
But in their pitch to voters at the debate hosted by Sky News both men urged Australians not to risk electing the opponents.
The US tariffs have reshaped the election debate, sidelining the previously dominant issue of the cost of living and blunting the coalition's key attack line that people had become poorer under Labor.
Dr Chalmers attempted to tie the opposition to the Trump administration accusing it of copying the president's policy platforms, such as the Elon Musk-led cost-cutting agency the Department of Government Efficiency.
"We've got an opposition leader and an opposition which is absolutely full of these kind of DOGE-y sycophants who have hitched their wagon to American-style slogans and policies and especially cuts which would make Australians worse off," he said.
Opposition senator Jacinta Nampijinpa Price was recently named the coalition spokesperson for government efficiency.
Mr Taylor criticised the government for presiding over a budget, released last month, that forecast $179 billion of deficits over the next five years and a return to a structural deficit.
But neither offered a credible plan for economic reform to balance the budget when pressed by moderator Ross Greenwood.
The coalition on Thursday promised to establish two future funds that will help pay down Australia's debt, improve childcare and health, and boost economies in regional areas.
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