Premium consumer brands such as  and, until recently, Australian wines, have been big winners from rising commerce between China and the West.

When things turn sour, however, they can be especially vulnerable too. The sorry state of Australia’s once-thriving wine-export business is a case in point—and a warning about what could happen, if tensions between China and the West spike again.

In 2020, China imposed a 169% tariff on Australian wine, accusing the country’s winemakers of “dumping” their products into China—i.e., selling below normal prices. However, the measure came shortly after Australia had called for an international investigation into the origins of Covid-19. China also imposed restrictions on other Australian goods, including barley and coal.