If China Moves Forward with Tariffs on Australian Barley, the U.S. Could Benefit

Posted on Mon, 05/11/2020 - 15:41

China is preparing to apply an anti-dumping tariff of up to 73.6% and a subsidy margin of up to 6.9% on Australian barley, several major Australian grain groups said over the weekend. China has wrapped up an 18-month investigation into allegations Australia has been dumping barley onto its market.

Some believe there could be a political reason for any such decision. Two weeks ago, China’s ambassador to Australia warned there could be economic consequences to Australia’s push for a probe into the origins of Covid-19.

Australian Prime Minister Scott Morrison said he expects China to keep the matters separate and deferred additional inquiries on the matter to the commerce ministry.

These tariffs would halt Australian exports of barley to China, its top market. China typically takes around half of Australia’s total barley exports. If Australia did stop shipping barley to China, this could present an opportunity for U.S. exporters.