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- Treasury Wine (TWE) shares have dropped today after China’s Ministry of Commerce confirmed it will be putting tariffs on Australian wine for five years
- The final tariff on wine exports to China in bottles and containers holding less than two litres has been set at 175.6 per cent
- This tariff has been put into place after the Ministry’s final determination in its anti-dumping and countervailing investigations
- Treasury Wine is now planning on diverting its high-end wine that was set to China to other markets
- On the market today, Treasury Wine is down 1.67 per cent and is trading at $10.60 per share
Treasury Wine (TWE) shares have dropped today after China’s Ministry of
Commerce placed tariffs on Australian wine for the next five years.
The final tariff on wine exports to China in bottles and containers holding less than two litres has been set at 175.6 per cent.
This tariff has been put into place after the Ministry’s final determination in its anti-dumping and countervailing investigations into certain Australian wine exports into China.
The tariff has been applied from yesterday, March 28.
After Australia–China relations soured last year, Treasury Wine made plans to divert most of its high-end wine from China to other markets such as Thailand, South Korea, Vietnam and Japan.
“[We are] now executing a detailed response plan to maintain the long-term strength of its business model and brands, with benefits expected to progress to full potential over a two to three-year period,” the company told the market.
The company also noted that today’s final determination does not result in any change to those plans.
In the 2020 financial year, China accounted for 30 per cent of Treasury Wine group sales.
On the market today, Treasury Wine is down 1.67 per cent and is trading at $10.60 per share at 1:47 pm AEDT.
