China Imposes Provisional Tariffs on EU Dairy Imports

China announced provisional tariffs of up to 42.7 percent on dairy products imported from the European Union, escalating a trade dispute triggered by the bloc's duties on Chinese electric vehicles. The measures, detailed by China's Commerce Ministry on Monday, take effect Tuesday and target items such as milk, cheese and cream.

The tariffs stem from an antisubsidy investigation launched in August 2024, which examined financial support provided to EU dairy producers under the bloc's Common Agricultural Policy and additional aid from member states including Italy, Ireland and Finland. Ministry officials stated that preliminary findings showed these subsidies distorted competition in the Chinese market, allowing EU exporters to undercut local prices and cause material injury to China's domestic dairy industry. The duties will be collected as cash deposits and range from 21.9 percent to 42.7 percent, with rates varying based on companies' cooperation during the probe. Firms that provided detailed data and participated fully, such as Italy's Sterilgarda Alimenti at 21.9 percent, received lower rates. Non-cooperating entities, including Belgium's FrieslandCampina units, face the...