SYDNEY (REUTERS) – Australia is not in a trade war with China, Agriculture Minister David Littleproud said on Tuesday (May 19), a day after China announced import tariffs on Australian barley.

“No, there’s no trade war. In fact, even today, I think you have seen that there’s increased demand for iron ore out of China,” the minister told a media briefing.

“The reality is they have used a process, quite fairly, around a belief that we have not been fair in our trade.”

The minister earlier in the day said Australia would consider going to the World Trade Organisation after China on Monday announced anti-dumping and anti-subsidy duties totalling 80.5 per cent on Australian barley imports from May 19. The move is expected to all but halt a billion-dollar trade between them.

China’s Ministry of Commerce said it had confirmed dumping by Australia and significant damage on its domestic industry as a result, following an inquiry which began in 2018.

The tariffs on barley, which will remain in place for five years, are the latest agricultural commodity to be affected by a deteriorating relationship between Canberra and Beijing.

Australia’s relationship with Beijing soured in 2018 when it banned Huawei from its nascent 5G broadband network, while tensions were escalated by concerns within Canberra over China’s attempts to secure greater influence in the Pacific.

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