China will impose a 55 per cent tariff on Australian beef within days as the global superpower looks to limit imports and protect its farmers. The quota, set at 205,000 tonnes for the entire year, is about one-third lower than total imports from 2025. Once this mark is hit, a 55 per cent tariff will be applied to all beef imports from Australia.
Quota Approaching Rapidly
Chinese state media outlet the Global Times reported that Australia is quickly approaching this quota. Earlier this week, China’s Ministry of Finance and Commerce revealed that Australia had reached about 90 per cent of its quota. Previously, the ministry announced in March that imports of beef from Australia had reached 50 per cent of the annual quota under its safeguard measures, and reached 80 per cent in May.
Impact on Australian Farmers
Meat and Livestock Australia (MLA) general manager of international markets Andrew Cox said the tariffs would likely weigh on Australian beef farmers. “I don’t think it will totally stop, but certainly 55 per cent is a significant barrier to trade,” Mr Cox said. “There’s no doubt we’ll be sending significantly less beef in the second half of the year, but I can’t give you an exact figure.” He added that Chinese customers have a strong willingness to stock Australian beef, which is popular in steakhouse menus and retail shelves.
If Australia hits the 205,000 quota by June 10 as expected, it would exceed last year’s beef exporting pace by almost two months. This would also be about four months ahead of 2024 as Australian beef’s popularity has surged at Chinese restaurants and high-end supermarkets.
Broader Trade Tensions
The levy comes as the United States plans to hit Australia with a 12.5 per cent tariff after determining Australia had failed to prevent the importation of goods made with forced labour. Australia was one of 60 countries called out by the US for its alleged failure to stop importing goods made with forced labour. The Trump administration said countries that had implemented forced-labour import bans, committed to a ban, or operated a partial prohibition, would face additional tariffs of 10 per cent. This levy will apply to 15 countries, including Canada, Ecuador, Indonesia, Malaysia, Britain and the European Union. The remaining 45 countries, including Australia, will face an additional 12.5 per cent tariffs under Trump’s proposal.
The quota also applies to other major beef exporters such as the United States, Brazil, Argentina and New Zealand. It was introduced after the Trump Administration slapped tariffs on beef imports to the United States.
Australia’s efforts to lobby China to remove or increase the quota have been unsuccessful.
