Imported beef from Australia is seen at a supermarket in Beijing on January 1, 2026. Australia's 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 AU$1 billion between the two countries. - AFP
SYDNEY: Australia's 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 AU$1 billion (US$669.2 million) between the two countries.
China announced it would impose additional 55 per cent 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," Australian Trade Minister Don 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 is world-class and high in demand, and we will continue to advocate for and support our beef industry."
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 tonnes for 2026.
The tariffs follow China's beef price trending downwards in recent years, with analysts blaming oversupply and a lack of demand as the world's second-largest economy has slowed.
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.
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".
The relationship between the two countries has improved in recent years with Beijing lifting a slew of bans on Australia's most lucrative export commodities.
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.
Australia is part of a loose US-led alliance that has aggressively pushed back against China's bid for influence in the Pacific region. - AFP
