NSW Riverina wine producer Tim McMullen said he was "disappointed" but not surprised after China extended its import tariffs for another five years.
China late last week decided to continue imposing tariffs between 116 and 218 per cent on Australian wine after claiming the imports were being "dumped" on the market at below fair prices.
Mr McMullen, the managing director of Borambola Wines east of Wagga, said China had "been a really good market for us and something we have built up over ten years and to have that snuffed out is disappointing".
"We are looking at other countries and concentrating on what we do locally within a 150-kilometre radius of Wagga," he said.
"It will impact on us; that money would have allowed us to do other things quicker and it certainly has a flow-on effect on local jobs."
IN OTHER NEWS:
The Australian Grape and Wine association has seen a 10 to 15 per cent reduction in red wine prices.
Pastorale and Meccanico sommelier Nick Stanbury said there would be a "knock-on effect" on wine prices for consumers in Australia due to "excess stock" but there were other factors such as bushfire impacts.
"There was quite a few significant regions affected by fires and a lot of reds from that vintage will start to be released from now to the next 12 to 24 months, so if you're hearing about good prices, you may as well go out there and buy now," he said.
Mr Stanbury said it was possible that China shifting its buying habits could push up prices for "top end" wines produced in France.
"I think everyone should buy wine from Australian and local producers as much as they can to help these businesses get through the next tough few years," he said.
Riverina MP Michael McCormack said the federal government would continue to work with the Australian wine industry "to defend against anti-dumping and countervailing claims as we look at options to resolve this issue, including taking the matter to the World Trade Organisation".
"The Australian wine industry has indicated it will consult constructively with us as we explore other markets in a bid to counter this decision," he said.
Labor's duty senator for the Riverina, Deborah O'Neill, said she was "deeply disappointed" by the tariff decision. "What is Mr McCormack's plan to support our local exporters and keep people in jobs?" she said.