China has announced substantial provisional tariffs reaching 42.7% on European Union dairy imports, marking a significant escalation in the ongoing trade tensions between Beijing and Brussels. The measures, effective immediately, target a comprehensive range of dairy commodities including fresh and processed cheeses, blue cheese, milk, and cream with fat content exceeding 10%.
The Ministry of Commerce clarified that these punitive duties stem from preliminary findings of an investigation initiated in August 2024, which examined subsidies provided by EU member states under the Common Agricultural Policy and national programs in countries including Italy, Ireland, and Finland. Chinese authorities determined these subsidies had caused material damage to China’s domestic dairy industry.
This development represents the latest chapter in a series of reciprocal trade measures between the economic powers. The dairy tariffs directly respond to the EU’s earlier imposition of tariffs up to 45.3% on Chinese-manufactured electric vehicles. Beijing has concurrently pursued investigations into European brandy and pork imports as complementary countermeasures.
The trade relationship between China and the EU remains increasingly strained, with the EU’s substantial trade deficit exceeding €300 billion ($352 billion) with China becoming a focal point of economic discussions. Just last week, Beijing implemented tariffs up to 19.8% on EU pork imports—significantly reduced from initially proposed rates of 62.4%—citing dumping practices that harmed domestic producers.
In July, China had previously announced tariffs up to 34.9% on EU brandy imports, though several major cognac producers received exemptions. Throughout these developments, Chinese officials have consistently urged the EU to rescind its electric vehicle tariffs, positioning Beijing’s actions as necessary responses rather than escalatory measures.