China Slaps Steep Tariffs on EU Dairy Products Amid Trade Tensions

China has imposed provisional duties of up to 42.7% on certain EU dairy products, perceived as retaliation for the EU's electric vehicle tariffs. The duties target various dairy items, impacting companies like Arla Foods and FrieslandCampina. This move comes amid ongoing trade tensions between China and the European Union.

China is set to enforce provisional tariffs of up to 42.7% on certain European Union (EU) dairy imports, as part of an anti-subsidy investigation widely interpreted as a countermeasure against the EU's electric vehicle tariffs. The levies, affecting products such as milk and cheese, will be effective from Tuesday.

The new tariffs, ranging between 21.9% and 42.7%, predominantly hover around 30% for most companies. Among those affected are globally recognized brands like Arla Foods and FrieslandCampina. The European Commission has yet to comment on this development, which is a preliminary measure subject to potential revision in a final ruling.

Trade disputes have intensified since the EU initiated an investigation into Chinese electric vehicles earlier in 2023. China's Ministry of Commerce claims EU dairy imports are subsidized, harming domestic producers, and aims to protect its local dairy industry currently facing declining demand and oversupply issues.

(With inputs from agencies.)