Question

"Beijing charged Australia a heavy penalty for Australian Prime Minister's support on Trump's Covid-19 comment. China imposed 80.5 percent tariff on Australi's barley export. Three quarters of Australian exports were to China. Australi, which is the number one barley supplier of China, was exporting 1.5-2 billions dollars worth of barley here and this accounted for half of all of their export. Chinese Minister of Commerce declared that the tax will stand for the next 5 years."

When determining the tariff, how China should use the fact that it is a big country and it has the power to effect the barley price in the world?

Answer 1