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Trade Minister Don Farrell has said the government is “disappointed” with China’s decision to impose new beef import tariffs, with one industry group warning the move could damage trade worth over $1 billion between the two countries.
China announced it would impose additional 55 percent tariffs on some beef imports from countries including Brazil, Australia and the United States that exceed a certain quantity for the next three years.
The country also said it would suspend part of a free trade agreement with Australia covering beef.
“We are disappointed by this decision,” Farrell said in a statement.
“We have made it clear to China that Australian beef is not a risk to their beef sector, and that we expect our status as a valued free trade agreement partner to be respected.”
“Our beef stands among the best globally and remains highly sought after. We are committed to championing and backing our beef sector.”
Recently imposed tariffs come in the wake of declining beef prices in China, attributed by analysts to an oversupply and waning demand as the nation’s economic growth decelerates.
China is Australia’s second-most lucrative beef export market, behind the United States.
Under the new rules, Australia faces a quota of around 200,000 tons for 2026.
According to Beijing, investigations revealed that foreign beef imports have adversely affected China’s local beef industry.
At the same time, Chinese beef imports from countries such as Brazil, Argentina and Australia have surged.
Investigators found that beef imports had damaged China’s domestic industry, Beijing said.
Industry group warns of hit on $1 billion sector
The Australian Meat Industry Council said in a statement the new restrictions had the “potential to reduce Australian beef exports to China by about one-third compared to the last twelve months — trade worth over A$1 billion”.
The council’s executive officer Tim Ryan warned the tariffs would have a “severe impact” on trade flows to China and “restrict the ability for Chinese consumers to access safe and reliable Australian beef”.
Tensions began in 2018 when Canberra excluded telecommunications giant Huawei from its 5G network on security grounds and later passed laws on foreign interference.
Then in 2020, Australia called for an international investigation into the origins of COVID-19 — an action China saw as politically motivated.
Australia has spent much of the past few years trying to insulate the vital trade relationship with China — its biggest trade partner — from geopolitical headwinds.
