Tony Batagli, CEO of the national organization Australian Australian Grape and Wine, said Beijing’s decision to impose tariffs of up to 212% on Australian wine imports has put trade with mainland China at risk.
Batgalen has worked with about 200 wine producers in Australia, who have “built their own business” around exporting to China and no longer have any backup plans.
“We were shocked, we were shocked,” Betagle told CNN Business. “Given the extent of these interim tariffs, I mean they will close the market in China, led Australian bottled wine, premium wine. At this level there is no way we can compete.”
Businesses have been hit hard by tariffs on effective wines on Saturday. After the announcement, some container ships bound for mainland China had to return to Australia, Butt said.
“Orders are being canceled, orders are being suspended,” he said. “No one wants to … just take extra import duty to get it through customs. Essentially the market will be closed for us.”
According to CEO Tim Ford, some wines are being considered for TWE which has already arrived at the port of Shanghai. “We will assess [what to do with] “That product,” he said in an analyst’s call on Monday.
Ford added, “We are very disappointed to find our business, our partners’ businesses and the Australian Australian wine industry in this position.” “Our focus is very clear on building our business outside of China over the next period.”
The plan was not enough to reassure investors. Shares of TWE closed down 6.9% in Sydney on Monday after the tariff was announced, following an 11.3% decline on Friday.
On Monday, Ford called on the Australian government to help businesses find a solution.
“Unresolved issues will have a significant impact,” he said. “Things can change, and as they change we will deal with it, but without the strategy of hope if you want, we will deal with the cards we know at the moment. Because the strategy of hope is not a very smart strategy.”
.
