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Trade Wars: China slaps 200% import tariff on Australian wine

Graham Watson

29th November 2020

Another day, another import tariff: this time China is accusing Australia of 'dumping' cheap wine in China and has introduced a 200% tariff on it.

Officials in China have argued that some Australian wine is being sold cheaper there (dumped) than in its home market through the use of subsidies. Australia has rejected that assertion.

You might think about how you can draw the possible impact of this tariff on the Chinese market using supply and demand analysis.

Australian producers are less than impressed and with little wonder, data shows that in 2019, approximately 39% of Australia's wine imports went to China (by value).

Worth noting though that China is not the only country imposing stiff tariffs on imported wine! The announcement brings Chinese tariffs roughly in line, and in some cases still below, the 150% tariff India already imposes on all foreign wine.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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