China beef tariffs prompt calls to respect free trade deal

China has been urged to respect its free trade relationship with Australia after imposing import tariffs that could cost the domestic beef sector more than $1 billion a year.

By AAP & CBA Newsroom

2 January 2026

Hereford cattle travelling in a dusty paddock. Credit: Adobe Stock

Key points

  • China imposed beef tariffs of up to 55% on Australian exports
  • Exports to China could fall by about a third, industry groups warn
  • Potential losses exceed $1bn a year for the beef sector
  • Industry groups and the federal opposition say the move breaches the free trade deal

Beef exporters have been caught off guard after China announced tariffs of up to 55 per cent on beef imports from countries including Australia when shipments exceed set quotas.

The measures are aimed at protecting China’s domestic farmers and producers. Australia has been allocated 205,000 tonnes under China’s total 2.7 million-tonne beef import quota for 2026.

Free trade agreement under scrutiny

While other exporting nations are also subject to quotas, industry groups and the federal opposition argue the move breaches the free trade agreement signed by Australia and China in 2015.

Trade Minister Don Farrell said Australian officials had told their Chinese counterparts the decision was unjustified.

“We have made it clear to China that Australian beef is not a risk to their beef sector, and that we expect our status as a valued free trade agreement partner to be respected,” he said.

“Australia is a trading nation, with a network of trade agreements spanning almost 80 per cent of the globe.”

Government raises concerns with Beijing

Agriculture Minister Julie Collins said the government had “serious concerns” about the tariffs and was working closely with industry to assess the full impact.

“We will always stand up for our farmers and producers, and for our proud beef industry,” she said.

The coalition has urged Prime Minister Anthony Albanese to use his relationship with Chinese President Xi Jinping to seek a resolution.

Industry warns of billion-dollar impact

Industry bodies Cattle Australia and the Australian Meat Industry Council estimate the restrictions could cut Australia’s beef exports to China by about a third compared with 2025.

That would equate to a loss of more than $1 billion in annual trade.

Newsroom

For the latest news and announcements from Commonwealth Bank.

Things you should know

Some of the content presented in this section has been provided by Australian Associated Press (AAP). Commonwealth Bank of Australia (CommBank) is not responsible for the accuracy, quality, reliability, or completeness of AAP information or any linked websites. This material is published for general information purposes only.