Pandemic Tensions Lead China to Threaten Large Tariffs on Australian Barley

Tensions between China and Australia are spilling into agriculture, as Beijing is threatening large tariffs on Australian barley after Prime Minister Scott Morrison has pushed for an inquiry into the origins of COVID-19.

China’s ambassador to Australia, Cheng Jingye had warned that his country would impose economic sanctions if Morrison continued to push the point, and now it appears that China is set to make an initial move against Australian barley exports.

If imposed, these sanctions may include a dumping margin of as much as 73.6 percent and a subsidy margin of up to 6.9 percent for barley imports arriving in China from Australia. If these measures come to pass, it would effectively mean an end to the barley trade between the two countries. Barley is one of Australia’s top three agricultural exports to China, however, since 2018 it has been targeted for dumping allegations. Typically, half of all barley produced in Australia is exported to China, representing trade that was valued at A$1.5 billion in 2018. More on this story