The European Union has condemned China’s decision to impose duties of up to 42.7 percent on selected EU dairy products, calling the move “unjustified” and a further escalation in an already tense trade dispute.
China’s measures, officially termed “duty deposits,” range from 21.9 percent to 42.7 percent and take effect on Tuesday. They target products including fresh and processed cheese, curd, blue cheese, and certain milk and cream items, according to a statement from Beijing’s commerce ministry.
The levies follow an anti-subsidy investigation launched in August 2024 at the request of the Dairy Association of China, with preliminary findings suggesting a link between EU subsidies and “substantial damage” to China’s domestic dairy industry.
European officials, however, disputed these conclusions. “Our assessment is that the investigation is based on questionable allegations and insufficient evidence, and that the measures are therefore unjustified and unwarranted,” a European Commission trade spokesman said. “The Commission is currently reviewing the preliminary determination and will submit its comments to the Chinese authorities.”
The dairy duties come just a week after Beijing announced anti-dumping levies on EU pork imports for five years. Those tariffs, effective from December 17, range from 4.9 percent to 19.8 percent, down from temporary duties of 15.6 percent to 62.4 percent imposed in September.
The EU and China have been locked in an escalating trade spat since 2024, initially triggered when the EU sought to impose tariffs on Chinese electric vehicles, citing unfair subsidies that undercut European competitors.
China denied the claims and retaliated with probes and tariffs on European pork, brandy, and dairy products. When the EU proceeded with its tariffs on EVs, Beijing imposed anti-dumping duties of up to 34.9 percent on European brandy, forcing manufacturers to raise prices.
In 2024, the EU ran a trade deficit of over $350 billion with China. European leaders, including French President Emmanuel Macron, have signalled that the bloc may adopt stronger measures, including tariffs, if the trade imbalance remains unaddressed.
The dispute extends beyond trade, with tensions between the EU and China also evident over geopolitical issues, including Russia’s 2022 invasion of Ukraine. The EU has urged China to pressure Moscow to end the conflict, but Beijing has so far declined to intervene.
About the Author
