South Australia wine exports to China reach post-tariff high
On the one-year anniversary of China’s removal of tariffs on Australian wine, exports from South Australia have reached AU$790 million year-on-year to February.
Wine is the state of South Australia’s third-largest export to China.
Exports of South Australian wine to China reached a new post-tariff record high of AU$790 million in the year to February 2025, according to Wine Titles.
The state’s trade and investment minister Joe Szakacs said that “the latest data shows that local wine producers’ exports have reached more than 80% of the all-time highs in 2020” in the 12 months since wine exports to China resumed.
He praised the efforts of businesses in the region who have made “incredible strides” in reentering China. He said: “This hasn’t happened by chance – it’s come about because of a dedicated and ongoing effort to rebuild a strong trade relationship.”
However, Szakacs warned that “we cannot rest on those achievements”.
The minister is currently leading a five-day visit to Mainland China, which will focus on “unlocking the growing trade opportunities” between the two countries.
China, which was previously Australia’s top wine export market, imposed punitive tariffs on Australian wine in November 2020, with the duties ranging from 107.1% to 212.1%. These tariffs were increased to 116.2% to 218.4% in March 2021 and were part of a wider trade dispute between the two nations.
After years of negotiations, the tariffs on wine were removed on 29 March 2024 following a decision by China’s Ministry of Commerce.
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The final trade barrier on live lobster imported into China from Australia was lifted in late December last year.
Fresh US tariffs
China and Australia both now face different trade barriers, with tariffs on all exports headed for the US. However, the two countries are likely to suffer to varying degrees.
US President Trump imposed an import tax of 10% on Australian goods.
For China, Australia’s biggest trading partner, the tariffs are as high as 125%.
Rebuilding relationships between Australia and China will become increasingly important as both nations are squeezed as a result of US levies.
But Australia has turned down China’s offer to “join hands” against Donald Trump’s tariffs.
China’s ambassador to Australia Xiao Qian argued joint resistance is “the only way” to stop the “hegemonic and bullying behaviour of the US”.
But Australian Prime Minister Anthony Albanese said the country would not be “holding China’s hand”, asserting that instead Australia would “speak for ourselves”.
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