Will China’s tariffs cripple the Aussie economy’s 2021 recovery plan?

Relations between China and Australia have been sinking to new lows. And they show few signs of turning around in the immediate future.

China is Australia’s largest export partner, purchasing 35% of Australia’s exported goods and services.

Enter the tariffs

In what Australia claims is a violation of the World Trade Organisation’s core rules, yet China claims are legitimate tariffs in response to Australian subsidies and dumping of products, China has slapped punitive tariffs on a range of Australian exports, rattling share markets.

To date these include import tariffs on barley, wine, meat, lumber, lobsters and (unofficially) coal. But that list might well grow. Honey producers, cotton and wheat farmers, and pharmaceutical…