BEIJING — China has escalated its trade confrontation with the European Union by implementing provisional anti-subsidy tariffs ranging from 21.9% to 42.7% on imported EU dairy products, effective immediately. The move has drawn sharp criticism from Brussels, which labeled the measures as “unjustified” and based on insufficient evidence.
The tariffs target various dairy commodities including fresh and processed cheeses, curd, blue cheese, and specific milk and cream products. China’s Ministry of Commerce stated that these measures follow an anti-subsidy investigation initiated in August 2024, prompted by a formal request from the Dairy Association of China. Preliminary findings from the investigation allegedly demonstrate a direct correlation between EU subsidies and significant harm to China’s domestic dairy sector.
European Commission trade representatives immediately challenged the validity of China’s conclusions. “Our assessment indicates the investigation relies on questionable allegations and inadequate evidence, making these measures both unjustified and unwarranted,” a Commission spokesperson stated, adding that the EU is currently reviewing the preliminary determination and will submit formal comments to Chinese authorities.
This dairy tariff imposition follows closely on Beijing’s recent decision to enforce five-year anti-dumping duties on EU pork imports, which took effect December 17th with rates between 4.9% and 19.8%. These developments represent the latest escalation in a broader trade conflict that began when the EU moved toward implementing substantial tariffs on Chinese electric vehicles, citing unfair subsidy practices.
The ongoing trade tensions occur against the backdrop of a significant trade imbalance, with the EU reporting a $350 billion trade deficit with China in 2024. French President Emmanuel Macron recently indicated Europe’s willingness to consider stronger measures, including additional tariffs, if the trade disparity remains unaddressed. Beyond commercial disputes, the two economic powers also remain divided on geopolitical issues including the Ukraine conflict, where the EU has repeatedly urged China to leverage its influence with Moscow.