China is imposing tariffs of up to 212% on Australian wine imports as trade tensions rise between the countries

• Australian companies importing wine to China will face tariffs of up to 212%, China's Ministry of Commerce said Friday.
• The move follows an anti-dumping probe, where Chinese officials have said Australia is selling its wine cheaper in China than domestically.
• Australian officials called the tariffs unjustifiable and warn that it could devastate companies' wine trade with China.
• China is the top market for Australian wine exports, making up 39% of Australia's wine exports by value.

China will impose temporary tariffs of up to 212% on Australian wine imports as an anti-dumping measure, China's Ministry of Commerce said Friday.

The move is likely to further escalate trade and diplomatic tensions between Beijing and Canberra.

Australia's trade minister Simon Birmingham said the tariffs were "grossly, grossly unfair, unwarranted, [and] unjustified."

Anti-dumping measures are protectionists tariffs that government can impose on imports it believe are unfairly priced and could undercut local businesses.

China in August began an anti-dumping probe into imports of Australian wine at the request of the Chinese Alcoholic Drinks Association. Earlier this month, the association called for retrospective tariffs on Australian wine imports.

Chinese officials say Australia is using subsidies to sell its wine cheaper in China than domestically. Australia has rejected these claims.

"China's recent comments gives the perception that it's more about their grievances around those matters, rather than in fact around anything any industry has done wrong," Australia's agriculture minister David Littleproud told media on Friday.

Importers bringing in investigated products will need to pay deposits to China's customs authority, according to the statement. These range from 107% to 212%, depending on the company.

The new tariffs will be valid from Saturday, but the ministry did not specify how long they will last. It said it looked into samples from a few Australian firms, including that of Treasury Wines, Casella Wines, and Australia Swan Vintage.

Beijing's latest move comes against a backdrop of increasing tension between the countries after Canberra called for an international inquiry into the origins of the novel coronavirus.

The tariffs "will render unviable for many businesses, their wine trade with China," Birmingham said.

China is the top market for Australian wine exports, making up 39% of Australia's wine exports by value or more than A$1 billion in the year to September.

The new tariffs could hurt an industry already struggling with the impact of COVID-19. The near ban on international tourism to Australia, alongside a general lack of domestic travel amid lockdown, meaning visits to wineries – another source of income for the industry – have plummeted.

Reporting by Sophie Yu in Beijing, Byron Kaye, Jonathan Barrett in Sydney, Min Zhang, and Shivani Singh for Reuters, Grace Dean for Business Insider