China will lift anti-dumping and anti-subsidy tariffs on Australian wine from March 29, the Chinese commerce ministry said on Thursday, ending three years of punitive levies and offering long-awaited relief to Australian wine producers.

The tariffs, of up to 218.4 per cent, were first imposed in March 2021 for a period of five years along with a host of other trade barriers on Australian commodities when ties soured after Canberra called for a probe into the origins of Covid-19.

Ties have improved significantly since last year, leading China to steadily lift trade hurdles on Australian goods ranging from barley to coal, and raising hopes the punishing tariffs on shipments to Australia’s top wine export market would soon be removed.

“Given the situation in China’s wine market has changed, the anti-dumping and anti-subsidy tariff imposed on wine imported from Australia is no longer necessary,” the commerce ministry said.

Australian wines imported into China were subject to zero tariffs after the signing of a free trade agreement in 2015, giving them a 14 per cent tariff advantage over many other wine-producing nations.