Beijing escalates trade dispute with Brussels
China announced on Monday that it will impose tariffs of up to 42.7% on dairy products imported from the European Union, following the conclusion of an anti-subsidy investigation that began in August 2024. The decision was released by China’s Ministry of Commerce and is set to take effect on December 23.
According to the ministry, subsidies provided by the EU to its dairy sector caused “substantial damage” to China’s domestic dairy industry. The new measures will be implemented based on ad valorem subsidy rates determined by the country’s Customs Tariff Commission.
Tariff levels tied to cooperation in investigation
The tariffs will range from 21.9% to 42.7%, depending on whether European producers cooperated with the investigation. Companies that cooperated will face a tariff rate of 28.6%, while those that did not cooperate will be subject to the maximum rate of 42.7%, a Commerce Ministry official said.
Affected products include fresh and processed cheeses, blue cheeses such as Roquefort from France, as well as certain milk and cream products. The measures apply broadly across multiple categories of dairy exports from EU member states.
Retaliation amid wider trade tensions
The move marks a further escalation in trade tensions between China and the European Union. Relations deteriorated last year after Brussels imposed tariffs of up to 45% on electric vehicles imported from China, citing unfair state subsidies.
In response to earlier measures, the EU challenged China’s provisional tariffs on European brandy at the World Trade Organisation in November, arguing that Beijing’s actions were not compliant with WTO rules.
EU response and recent tariff adjustments
An EU spokesperson described the dairy tariffs as “unjustified and unwarranted,” adding that the European Commission would submit formal comments to Chinese authorities. The Commission declined immediate further comment.
The announcement follows a series of recent trade adjustments by Beijing. Last week, China reduced tariffs on pork and pig by-products imported from the EU, lowering rates to between 4.9% and 19.8%. These reductions came after China had imposed temporary anti-dumping duties of up to 62.4% on European pork imports in September.
Outlook for EU-China trade relations
The dairy tariffs highlight the increasingly complex and contentious trade relationship between China and the European Union. With disputes now spanning sectors from electric vehicles to agricultural goods, analysts expect continued friction as both sides pursue defensive trade measures and legal challenges.