China hits EU dairy with tariffs, broadening trade conflict

BEIJING/BRUSSELS: China will impose provisional duties of up to 42.7 percent on dairy products imported from the European Union, the latest in a series of measures against EU exports widely seen as retaliation for the bloc’s electric vehicle tariffs.

The duties, to be collected from Tuesday, will range from 21.9 percent to 42.7 percent, although most companies will pay just under 30 percent. They target unsweetened milk and cream and fresh and processed cheeses, including the iconic French Roquefort and Camembert.

China’s Ministry of Commerce said it had found evidence that EU dairy imports were subsidised and hurting Chinese producers.

The European Commission, which oversees EU trade policy, said the investigation was based on “questionable allegations and insufficient evidence” and called the measures “unjustified and unwarranted”.

It already lodged a complaint at the World Trade Organization more than a year ago. “Right now, the Commission is examining the preliminary determination and will provide comments to the Chinese authorities,” a spokesperson said, noting that the investigation was set to conclude by Feb 21.

Monday’s decision is provisional and could be revised when a final ruling is made. China significantly lowered provisional tariffs on pork in its final decision last week.

Trade tensions with the EU erupted in 2023 when the European Commission launched an anti-subsidy investigation into Chinese-made electric vehicles.

It imposed tariffs in October 2024. In apparent retaliation, Beijing has imposed measures on imports of EU brandy, pork and now dairy. Conor Mulvihill, director of Dairy Industry Ireland, said it was frustrating that dairy seemed to be used as a “political pawn” in the wider EU-China EV dispute.