China Hits EU Dairy Imports With New Tariffs

China has stepped up its trade confrontation with the European Union by imposing temporary tariffs of up to 42.7 percent on selected European dairy products, a move widely seen as retaliation for EU duties on Chinese electric vehicles.

The Chinese Ministry of Commerce announced on Monday that the provisional duties follow the completion of the first phase of an anti-subsidy investigation into EU dairy imports. The tariffs, which will take effect on Tuesday, range from 21.9 percent to 42.7 percent, with most exporters expected to face levies of around 30 percent.

The measures cover a range of dairy products, including milk and cheese, among them well-known European varieties such as French blue cheeses. Chinese authorities stressed that the decision is temporary and subject to revision once the investigation commission issues its final ruling.

The move comes amid rising trade tensions that began in 2023, when the European Commission launched an anti-subsidy probe into electric vehicles manufactured in China. In response, Beijing initiated its own investigations and imposed duties on several EU products, including brandy, pork and now dairy goods.

China has previously softened the impact of similar measures. Just last week, it reduced provisional tariffs on European pork in its final decision, and earlier granted partial exemptions to major cognac producers following its brandy investigation.

The Chinese Commerce Ministry said negotiations with the EU over electric vehicle tariffs resumed earlier this month. However, the talks were expected to conclude last week, and no official outcome has been announced so far. A senior European diplomat in Beijing said recently that key issues remain unresolved.

China imported dairy products worth about $589 million that fall under the current investigation in 2024, a figure broadly in line with import levels recorded in 2023.

Analysts say the latest tariffs underline the increasingly tit-for-tat nature of trade relations between China and the EU, raising concerns about further escalation if negotiations fail to produce a compromise.