China’s imported beef tariff to protect local cattle industry could cost Australia $1b

CHINA has followed-through on its year-long investigation into imported beef and its alleged  impacts in the Chinese domestic beef industry, announcing a series of trade restrictions overnight.

China’s Ministry of Commerce imposed a series of Safeguard limits on major beef exporters for the next three years, effective today – but the measures are far from impartial and impact Australia more than some others.

Early last year China announced an investigation into imported beef’s impact on the domestic Chinese beef industry, following claims of complaints from Chinese cattle breeders and others who claimed competitive disadvantage.

Under great fanfare, the two nations brought a Free Trade Agreement into force in December 2015, with tariffs to gradually disappear over the following nine years.

China’s commerce ministry overnight said the country’s total beef import quota for 2026 for countries covered under its new ‘safeguard measures’ will be 2.7 million tonnes, roughly in line with the record 2.87mt it imported in 2024.

“The increase in the amount of imported beef has seriously damaged China’s domestic industry,” the ministry said in announcing the measure following an investigation launched in December 2024.

All beef exporting countries eligible for China are exposed to the new tariff, with the exception of a handful of lesser exporters including China’s allies Russia, Belarus, Colombia and Paraguay (which does not currently have beef access).

Under the terms of the announcement made this morning, Australia will this year (2026) be subjected to a Safeguard TRQ of 164,000 tonnes, representing about 55pc of the 2025 (Jan-Nov) total exported volume. Next year (2027) Australia’s safeguard rises a fraction to 168,000t, and 171,000t the year after that.

The out-of-quota tariff rate on Australian and other imported beef is expected to be 55pc.

China’s new country-specific allocations were based on July 2021 to June 2024 imports. The safeguard covers all chilled and frozen beef, but not offals or beef variety meat.

As can be seen in the attached table, the treatment of other exporting countries servicing the China market is inconsistent, to say the least.

Brazil has been allocated a Safeguard for 2026 of 1.106mt, or about 80pc of last year’s shipments. Brazil; exports well over 50pc of all its offshore beef to China, meaning it is heavily exposed to any tariff rise. New Zealand has been granted a quota of 205,000t – close to double its 2025 volume of 109,000t, but unlikely to be filled any time soon.

The United States – seriously limited not only by a cattle herd at 70-year lows, but also Chinese actions to delay the re-issuanace of access to more than 300 US meat processing plants – has received a 2026 TRQ quota of 172,000t, on a total shipment for the 2025 year to November of 55,000t.

Other big winners include Uruguay, with a safeguard figure next year of 324,000t on a 2025 shipment to November of 188,000t, and Argentina, with a safeguard this year of 511,000t on tonnage last year of 435,000t.

Clearly, despite having by far the largest impact on China’s domestic beef industry through sheer volume, South American exporters have been heavily favoured in the Safeguard measures.

For the 2025 year to the end of November, Australia exported just short of 250,000t of chilled and frozen beef to China and Hong Kong. In order to escape tariffs, about 90,000t of similar volume would this year have to be exported to other customers.

‘Unfair, inappropriate’, claims AMIC

In a statement issued this afternoon, the Australian Meat Industry Council said it was extremely disappointed with today’s announcement.

AMIC chief executive officer Tim Ryan said the new restrictive trade arrangements imposed on Australia are not fair, appropriate, or reflective of the long-standing, mutually beneficial trade relationship Australia has with China.

“This decision appears to reward other countries who have surged their volume of beef exported to the Chinese market in recent years,” Mr Ryan said.

“This decision will have a severe impact on trade flows to China over the duration of the measures’ enforcement, disrupt the longstanding relationships fostered under the China–Australia Free Trade Agreement, and restrict the ability for Chinese consumers to access safe and reliable Australian beef,” Mr Ryan said.

AMIC, along with Meat & Livestock Australia, engaged with the Chinese Government safeguard investigation team throughout their year-long investigation process. This included providing formal evidence at in-person hearings in China and hosting Chinese investigators in Australia.

“In these representations, AMIC and MLA repeatedly stressed that Australia remains a trusted, reliable and stable source of beef into China, helping to meet Chinese consumer demand. Imports of Australian beef are not a cause of damage to the domestic beef industry in China,” Mr Ryan said.

Australian beef is high-quality, safe, and sustainably produced, but accounted for just 8 percent of China’s overall beef imports in 2024. Nearly 80 percent of beef imported into China comes from South America.

The new restrictions announced this morning, have the potential to reduce Australian beef exports to China by about one-third compared to the last twelve months – trade worth more than A$1 billion, AMIC suggested.

AMIC said it would consider today’s announcement and the safeguard measures in more detail.

“We will make strong representations on our members’ behalf to the Australian and Chinese governments regarding the severe and unnecessary impact of these new measures,” Mr Ryan said.

Australia’s beef industry maintains longstanding collaborative partnerships in China – including tailored technical, research and development projects – which help improve the sustainability of China’s domestic beef industry.

The TRQ will be managed by China’s General Administration of Customs (GACC) and further work likely needs to be done to set up a transparent and timely system for tracking imports within the safeguard, as it will operate on a first-come-first-served basis, trade sources said.

“While the safeguard measures represent another trade barrier in China, the most-impacted suppliers will be Brazil and Australia. However, there are potential global market distortions, especially late in the calendar year when the safeguard would be expected to be triggered,” the US Meat Export Federation said in reaction this afternoon.

Government response

Prime Minister Anthony Albanese has confirmed Australian officials are communicating with their Chinese counterparts over the tariff developments.

He suggested Australia was not being singled-out by China’s policy, and the move had been a broad one.

“This is a general position that China has put,” he said. “We are advocating, as we always do, for Australian industry.”

Pressed on the potential impacts of the announcement, Mr Albanese declined to go into specifics, instead pointing to his belief that Australian beef was “the best in the world”.

“We compete in the world very well, and our products are in great demand right around the world, we expect that will continue to be so,” he said.

“The Australian beef industry has never been stronger than it is today as we enter 2026.”

Nationals leader David Littleproud said China’s decision to restrict the import of beef from Australia was extremely disappointing for the cattle industry.

“Cattle Australia is warning the beef industry stands to potentially lose $1 billion in beef exports, following the announcement,” he said.

“China’s announcement is devastating to the beef industry this year, but unfortunately it is also the latest development of failures under the Albanese government,” Mr Littleproud said.

“The Prime Minister and Trade Minister must make urgent representations to their counterparts in Beijing.”

 

 



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