China has slapped another round of tariffs to Australian wine beginning on Friday, and at the same time reached an agreement with France to purchase more French wine, apparently attempting to wallop one of the United States’ biggest allies in the Asia-Pacific.

China’s Ministry of Commerce on Thursday announced tariffs ranging from 6.3% to 6.4% would apply to imported Australian wines in containers holding two liters (0.5 gallons) or less.

It said it had decided to take “temporary countervailing measures” starting from Dec. 11, after its investigation agency had determined that the Australian government was subsidizing its wine manufacturers, an act which it thought caused substantial damage to the domestic wine industry.

This is the second time China has imposed taxes on Australian wine in less than two weeks. Starting on Nov. 28, import operators have had to pay an anti-dumping duty that ranges between 107.1% and 212.1%.

China is the biggest buyer of Australian wine, and the recent tariffs have acted as a sledgehammer to the country’s wine industry, which contributed US$318 million before the additional duties were introduced.

Some medium-sized producers said that after the anti-dumping tariffs, their sales declined by 20% to 30% while some also experienced layoffs during the global economic slowdown due to the COVID-19 pandemic.

Years-long diplomatic disputes over China’s coronavirus response, human rights breaches and territorial expansion have coincided with Chinese measures against Australian coal, timber, cotton, grain and seafood exports.

Canberra banned Chinese technology company Huawei from participating in its 5G network in 2018, and earlier pressed for an independent international investigation into the origin of COVD-19.

As a countermeasure, Beijing refused to clear customs for ships coming from Australian, forcing them to be stranded outside Chinese ports for up to weeks.

Hu Xijin, editor-in-chief of state media Global Times, said on social media on Wednesday — after a meeting with Australian Ambassador to China, Graham Fletcher — that Australia should reflect on this and try to truly understand the rise of China.

Meanwhile, Chinese President Xi Jinping spoke with French President Emmanuel Macron on Wednesday to discuss the next stage of bilateral and multilateral cooperation, reaching agreements to import more agricultural products from France, such as wines and cheeses, under the EU-China Geographical Indications Agreement, which will come into effect early next year.

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