Wine Spectator: China’s Trade War On Australian Wine Is Over—For Now

China’s government has officially abolished punitively high tariffs on imported Australian wine. The Beijing government announced the removal of the duties—which ranged as high as 218 percent—March 29. Australia’s wine industry, which was China’s biggest source of imported wine before the tariffs were enacted in 2020, hopes the reversal will offer new opportunities at a time when grapegrowers are confronting an oversupply and pulling up vines. However, industry analysts caution that the Chinese market is not the same as it was four years ago.

The Chinese government said it was ending the tariffs after an evaluation of prevailing market conditions for China’s wine sector. But a bigger factor was the easing of tensions between Beijing and Canberra. In a joint statement with Australia’s foreign minister and trade minister, Australian prime minister Anthony Albanese said, “We welcome this outcome, which comes at a critical time for the Australian wine industry. The reentry of Australian bottled wine into the Chinese market will benefit both Australian producers and Chinese consumers.”

Treasury Wine Estates had the most lucrative import business in China before the tariffs due to the enormous success of the Penfolds brand in markets there. “The removal of tariffs on Australian wine exports to China is terrific news and is cause for celebration across the Australian wine industry and with our partners and consumers in China,” said CEO Tim Ford in a statement.

While many are excited to see the tariffs go, Ford is well aware of the challenges ahead. “We’re excited to bring more of our Australian luxury and premium wines back to the China market, but we’re mindful it will take time to sustainably regrow both supply and demand,” he said. Wine Spectator has the full story.

GET YOUR FIRST LOOK AT 2025 ESTIMATES AND 2030 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2025 IMPACT DATABANK REPORTS. CLICK HERE.