China's Ministry of Commerce will impose provisional tariffs of 21.9%–42.7% on a basket of EU dairy imports after an August 2024 probe found that EU subsidies harmed China’s domestic dairy sector. The duties cover cheeses, milk and high-fat creams and are presented as reciprocal to EU action on Chinese electric vehicles. The European Commission criticized the investigation as "questionable" and plans to send formal comments. The move adds to recent Chinese measures on EU pork and brandy amid a large EU trade deficit with China.
China Imposes Provisional Tariffs Up to 42.7% on EU Dairy Imports Amid Trade Dispute
FILE - A Chinese paramilitary policeman stands guard at the entrance to the European Union Delegation to China compound in Beijing, China, on Oct. 14, 2023. (AP Photo/Ng Han Guan, File)
China's Ministry of Commerce announced Monday that it will levy provisional tariffs of between 21.9% and 42.7% on a range of dairy products imported from the European Union, effective Tuesday. The measures follow preliminary findings from an investigation opened in August 2024, which concluded that subsidies for EU dairy exporters harmed China's domestic dairy industry.
Scope and Rationale
The temporary duties will apply to multiple dairy categories, including fresh and processed cheeses, blue cheese, milk, and cream with more than 10% fat by weight. The Commerce Ministry said its probe examined subsidies provided under the EU's Common Agricultural Policy and national support in countries such as Italy, Ireland and Finland.
Context And Reactions
Beijing framed the move as part of reciprocal trade actions after the EU opened an investigation into Chinese subsidies for electric vehicles and later imposed tariffs on China-made EVs that reached as high as 45.3%. China has also launched retaliatory probes and provisional measures on other EU products this year, including brandy and pork.
European Commission Response: The European Commission expressed concern, saying the investigation rests on "questionable allegations and insufficient evidence" and described the provisional measures as "unjustified and unwarranted." Spokesperson Olof Gill said the EU will review China’s reasoning and submit formal comments to Chinese authorities.
Broader Trade Picture
The announcement comes amid mounting economic tensions between Beijing and Brussels. The EU ran a sizeable trade deficit with China last year — in excess of €300 billion (roughly $352 billion) — a dynamic that has intensified scrutiny on both sides. In recent weeks China imposed provisional tariffs of up to 19.8% on EU pork (down from an earlier proposed ceiling) and up to 34.9% on brandy imports while granting some exemptions.
Next Steps: The measures are provisional; the Commerce Ministry's preliminary findings could form the basis for final duties, subject to further investigation and possible international consultations or challenges at the World Trade Organization. The European Commission has signaled it will respond formally and pursue all available channels to address what it calls an insufficiently evidenced probe.
