Exporters are being told to look at their options for market diversification to avoid the worst impacts of the escalating trade war with China.

Chinese authorities have reportedly called on businesses to halt imports of Australian produce such as lobster, wine and barley, but deny the claim.

The National Farmers Federation’s general manager of trade Ash Salardini told Bill McDonald a rumoured trade ban can be as damaging for farmers as a real one.

“The first thing we need to do … is sort out the facts from the hearsay.”

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