Beijing: China has announced provisional tariffs of up to 42.7% on dairy products imported from the European Union, escalating an ongoing trade dispute between Beijing and Brussels that was triggered by EU action against Chinese electric vehicles.
China’s Ministry of Commerce of the People's Republic of China said the measures will take effect on Tuesday and apply to a range of dairy imports, including milk, cheese, and cream. The decision follows preliminary findings from an anti-subsidy investigation launched in August 2024.
According to Chinese authorities, the probe examined whether EU dairy producers benefited from state support that harmed China’s domestic dairy industry. The investigation focused on subsidies provided under the EU’s Common Agricultural Policy, as well as additional national-level assistance such as direct payments, price support, and other forms of agricultural aid.
Beijing concluded that such subsidies distorted competition by allowing European exporters to sell dairy products in China at prices that undercut local producers, causing what it described as “material injury” to the domestic sector.
Under China’s trade-remedy framework, tariff rates vary depending on a company’s level of cooperation during the investigation. EU producers that cooperated by submitting detailed financial data and allowing verification were assigned a 28.6% tariff. Firms that failed to cooperate face the maximum 42.7% rate, a punitive measure commonly used in anti-subsidy and anti-dumping cases.
The move mirrors similar trade defence practices used by major economies, including the EU and the United States, but has drawn criticism for being deployed amid broader geopolitical tensions. The dairy tariffs are widely seen as a response to Brussels’ decision earlier this year to impose duties of up to 45.3% on Chinese-made electric vehicles, following its own investigation into state subsidies.
China has already taken similar steps against other European products. In recent months, Beijing launched investigations into EU brandy and pork imports and last week imposed tariffs of up to 19.8% on European pork, lower than initially proposed rates after further review.
The European Commission, which oversees trade policy for the bloc’s 27 member states, expressed concern over the dairy tariffs. A commission spokesperson said the investigation appeared to rely on questionable claims and insufficient evidence, describing the measures as unjustified. Brussels said it is reviewing China’s findings and plans to respond through diplomatic and technical channels.
EU–China trade relations have grown increasingly strained, particularly as attention turns to trade imbalances. The EU recorded a trade deficit of more than €300 billion with China last year, while Beijing has criticised European use of trade defence tools.
Despite the rising tensions, EU officials reiterated their commitment to maintaining stable trade and investment ties with China, while stressing the need for progress on long-standing concerns related to overcapacity, market access, and the use of trade instruments.
