China Raises the Stakes in EU Trade Dispute with Heavy Tariffs on Dairy Imports

China will impose provisional duties up to 42.7% on EU dairy products, potentially escalating trade tensions linked to the EU's electric vehicle tariffs. Targeting products like French cheeses, the decision is deemed 'unjustified' by the EU. New Zealand may benefit as a new source for dairy imports in China.

In a significant move, China announced provisional duties of up to 42.7% on dairy products imported from the European Union, intensifying already strained trade relations. The duties are perceived as retaliation against the EU's tariffs on Chinese electric vehicles, aiming to weaken EU economic influence.

The European Commission criticized the decision, labeling the Chinese measures as 'unjustified and unwarranted.' With the import duties set to start from Tuesday, EU dairy exporters find themselves in a challenging position. The EU has already filed a complaint with the World Trade Organization, and is reviewing China's preliminary investigation findings.

Market analysts suggest that New Zealand could gain new business opportunities due to the EU's loss of competitiveness in China. With dairy products becoming a political pawn amid trade disputes, the developments are watched closely by global dairy markets, eager to respond to shifting import landscapes.

(With inputs from agencies.)