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8h ago

China Enacts Three-Year Beef Safeguard With 55% Tariff on Imports Above New Quotas

Beijing cites injury to domestic cattle producers from surging shipments as it imposes country-specific caps.

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SHENZHEN, CHINA - APRIL 12: Packaged U.S. imported beef is displayed for sale at a supermarket, with marbled cuts individually wrapped and labeled with U.S. Beef stickers featuring the American flag, on April 12, 2025 in Shenzhen, China. China has imposed a new round of retaliatory tariffs on U.S. imports, raising duties to 125% in response to the latest escalation by the United States, which increased tariffs on Chinese goods to 145%. The growing trade tensions have further impacted China's export sector, affecting key industries such as logistics, manufacturing, and cross-border e-commerce. The measures are part of Beijing's broader strategy to counter rising economic pressure and defend its trade interests.
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Overview

  • Effective January 1, 2026, beef shipments that exceed annual country quotas face an extra 55% levy through December 31, 2028.
  • China set a 2026 total quota of about 2.7 million tonnes, allocating roughly 41.1% to Brazil (~1.1m t), 19% to Argentina, 12.1% to Uruguay, 205,000 t to Australia and 164,000 t to the United States.
  • Australia condemned the move as unnecessary, with industry groups warning exports could fall by about one-third, costing more than A$1 billion, and China also suspending part of the bilateral free trade deal covering beef.
  • Brazilian industry bodies warned of up to US$3 billion in lost revenue in 2026 as officials prepare talks with Beijing on quota details and potential transfers from underused allocations.
  • Analysts expect China’s beef imports to decline in 2026 with some suppliers front-loading shipments and diverting product to other markets, while the near-term impact on U.S. volumes appears limited given current trade levels and existing plant-registration constraints.