China hits EU dairy with tariffs

Duties, ranging from 21.9% to 42.7%, seen as retaliation for EU's EV tariffs

BRUSSELS/ BEIJING:

China will impose provisional duties of up to 42.7% on dairy products imported from the European Union, the latest in a series of measures against EU exports widely seen as retaliation for the bloc's electric vehicle tariffs.

The duties, to be collected from Tuesday, will range from 21.9% to 42.7%, although most companies will pay just under 30%. They target unsweetened milk and cream and fresh and processed cheeses, including the iconic French Roquefort and Camembert.

China's Ministry of Commerce said it had found evidence that EU dairy imports were subsidised and hurting Chinese producers.

The European Commission, which oversees EU trade policy, said the investigation was based on "questionable allegations and insufficient evidence" and called the measures "unjustified and unwarranted".

It already lodged a complaint at the World Trade Organisation more than a year ago.

Trade tensions with the EU erupted in 2023 when the European Commission launched an anti-subsidy investigation into Chinese-made electric vehicles. It imposed tariffs in October 2024.

In apparent retaliation, Beijing has imposed measures on imports of EU brandy, pork and now dairy.

China's Ministry of Commerce said negotiations over the bloc's EV tariffs resumed this month. A senior European diplomat in Beijing said last week that major issues remained between the two sides.

The Commission said it continued to engage with China on the possibility of replacing EV tariffs with minimum price commitments, although these price undertakings had to eliminate the harm from unfair subsidies and be practicable.

China imported $589 million of dairy products covered by the current investigation in 2024, similar to 2023 values.