HONG KONG — China announced on Monday that it will impose provisional tariffs of up to 42.7% on dairy products imported from the European Union, including milk, cream, and various cheeses. The tariffs are set to take effect on Tuesday, according to the Chinese Ministry of Commerce.

The duties are based on preliminary findings from an investigation launched in August 2024, focusing on subsidies provided by the EU and EU member states for their dairy and agricultural products. Beijing claims that these subsidies have caused “damage” to China’s domestic dairy industry.

---

Details of the Tariffs

The temporary measures will cover a range of dairy products, including:

• Fresh and processed cheese
• Blue cheese
• Milk and cream with fat content exceeding 10%

The Ministry of Commerce said the tariffs will range from 21.9% to 42.7%, applying to products imported from countries including Italy, Ireland, and Finland.

---

Background: EU-China Trade Frictions

The dairy tariffs are part of an ongoing trade dispute between China and the EU. Tensions escalated after the EU investigated Chinese subsidies for electric vehicles (EVs) and imposed tariffs of up to 45.3% on China-made EVs.

In response, China initiated countermeasures including:

• Anti-dumping investigations into EU pork and brandy
• Provisional tariffs on EU dairy products

Last week, China announced tariffs of up to 19.8% on EU pork, down from earlier preliminary rates of 62.4%. In July, Beijing also applied up to 34.9% tariffs on EU brandy imports, including French cognac, though some brands were granted exemptions.

---

European Union Reaction

The European Commission, which negotiates trade matters for all 27 EU member states, criticized the move. Spokesperson Olof Gill said:

“The Commission’s assessment is that the investigation is based on questionable allegations and insufficient evidence. The measures are therefore unjustified and unwarranted.”

Gill added that the EU will provide formal comments to Chinese authorities and remains committed to maintaining stable trade and investment ties with China.

The Commission also stressed that broader issues, such as trade overcapacity, unfair trade practices, and the EU-China trade deficit, need to be addressed to ensure fair and balanced economic relations.

---

Economic Context

The EU runs a significant trade deficit with China, exceeding 300 billion euros ($352 billion) in 2024. China, by contrast, maintains a large trade surplus with the EU. Analysts warn that these tariffs may:

• Impact EU dairy exporters, particularly in Italy, Ireland, and Finland
• Increase prices for European dairy products in the Chinese market
• Potentially escalate retaliatory measures between the two regions

---

Conclusion

The new duties on EU dairy products mark a continuation of the tit-for-tat trade dispute between Beijing and Brussels, which spans electric vehicles, pork, brandy, and now dairy. The situation underscores the complex dynamics of EU-China trade relations, as both sides seek to protect domestic industries while managing a highly imbalanced trading relationship.