Government Expresses Disappointment Over China's Newly Imposed Beef Import Tariffs

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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.”

China has recently imposed tariffs on beef imports, a move that underscores the nation’s ongoing struggle with its domestic beef industry. This decision is rooted in the findings of investigators who determined that the influx of foreign beef has adversely affected local producers. As China grapples with an economic slowdown, the domestic demand for beef has waned, leading to an oversupply and subsequent drop in prices.

Despite these challenges, advocates of the international beef trade remain unwavering in their support. “Our beef is world-class and high in demand,” they assert, emphasizing their commitment to upholding the vitality of the beef industry. This sentiment reflects a broader confidence in the quality and appeal of imported beef, even as China’s internal market dynamics shift.

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.

The introduction of tariffs is a significant development, reflecting Beijing’s efforts to shield its local industries from external pressures. As the world’s second-largest economy continues to navigate its economic hurdles, the impact of these tariffs will be closely monitored by both domestic stakeholders and international partners alike.

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.