China hits EU dairy industry with tariffs of up to 42.7%

"China will impose provisional duties of up to 42.7% on certain dairy products imported from the EU from Tuesday after concluding the first phase of an anti-subsidy investigation widely seen as retaliation for the bloc's electric vehicle tariffs. The tariffs will range from 21.9% to 42.7% although most companies will pay about 30% and target products such as milk and cheeses including protected origin brands such as French Roquefort and Italian Gorgonzola."

"The European Commission attacked the decision as unjustified and unwarranted and said it was examining it and would provide comments to the Chinese authorities. The commission's assessment is that the investigation is based on questionable allegations and insufficient evidence, and that the measures are therefore unjustified and unwarranted, the spokesperson Olof Gill said. Monday's determination is provisional and could be revised when a final ruling is made. China significantly lowered provisional tariffs on pork in its final decision last week."

"Trade tensions with the EU erupted in 2023 when the European Commission which oversees the bloc's trade policy launched an anti-subsidy investigation into Chinese-made electric vehicles. Beijing has imposed tariffs on imports of EU brandy, pork and now dairy, measures seen as retaliatory. However, as it did with pork, Beijing has reduced or limited the impact of its tariffs several times, including partly sparing the major cognac producers Pernod Ricard, LVMH and Remy Cointreau after its brandy investigation."

China will impose provisional duties on certain dairy imports from the EU, with rates ranging from 21.9% to 42.7% and most companies facing about 30%. The measures target milk and cheeses, including protected-origin products like Roquefort and Gorgonzola. The European Commission described the measures as unjustified and said the investigation relies on questionable allegations and insufficient evidence. The determination is provisional and could be revised in a final ruling. Trade tensions trace back to the EU's 2023 anti-subsidy probe into Chinese-made electric vehicles, and Beijing has previously imposed and later adjusted retaliatory tariffs on brandy and pork.

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