China Slashes EU Pork Tariffs Amid Trade Tensions

China has reduced tariffs on EU pork imports in what is seen as a strategic move amidst ongoing trade tensions with the EU over electric vehicle tariffs. This development is part of broader negotiations aimed at resolving trade disputes between the two economic giants.

China has dramatically reduced tariffs on European Union pork imports, which are valued at over $2 billion. This decision, announced on Tuesday, is a significant move in response to the EU's tariffs on Chinese electric vehicles. The new tariffs, ranging from 4.9% to 19.8%, will apply for five years starting Wednesday, a sharp decrease from the preliminary rates in September.

Importers will be refunded the difference between the old and new rates, offering a partial reprieve to EU producers reliant on the Chinese pork market. Noteworthy is Spain's lead in pork exports by volume to China, which captures nearly half of the EU's pork exports, valued at $4.8 billion in 2024.

The outcome is recognized as a positive step in ongoing trade negotiations between China and the EU, with further discussions anticipated on electric vehicle tariffs. Despite the optimism, the reduced rates could still impact Chinese consumer prices, while continuing investigations into European dairy products may influence future trade dynamics.

(With inputs from agencies.)