China Escalates Trade Tensions with EU, Imposes High Dairy Tariffs

China has announced that it will impose provisional tariffs of up to 42.7 percent on certain dairy products imported from the European Union (EU), marking a significant escalation in ongoing trade tensions between Beijing and Brussels.

Reuters

The move, effective 23 December 2025, follows a preliminary anti-subsidy investigation initiated by China’s Ministry of Commerce in August 2024, which concluded that EU dairy imports, such as milk and cheese, received subsidies that harmed China’s domestic dairy industry.

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Tariffs Target Key EU Exports

Under the provisional duty structure:

Tariffs will range from 21.9 % to 42.7 %, depending on the company and product.

Reuters

Products affected include fresh and processed cheeses, milk, cream, and specialty dairy items such as French blue cheese.

brusselstimes.com

Beijing says the countervailing duties are designed to protect its domestic dairy sector, which it claims has been negatively impacted by subsidised EU goods.

Anadolu Ajansı

Part of a Broader Trade Dispute

The spat between China and the EU stems from a wider series of trade actions that began in 2023, when the European Commission imposed high tariffs on Chinese electric vehicles (EVs) over concerns that Beijing’s subsidies gave Chinese manufacturers an unfair advantage.

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China responded with its own anti-dumping and anti-subsidy probes into EU exports, including brandy and pork, followed now by dairy — a key product in European agriculture.

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European Union Rejects China’s Claims

The European Commission denounced the dairy tariffs as “unjustified and unwarranted”, arguing that the investigation lacks sufficient evidence and that the measures violate international norms.

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A trade spokesman for the EU said officials are examining the case and have already taken the issue to the World Trade Organization (WTO), asserting that Brussels will defend EU farmers and exporters “against China’s unfair use of trade defence instruments.”

CNA

Industry groups in Europe have also criticised the decision, with associations in France and Germany describing the tariffs as a “shock” and a “hard blow” to companies that rely on exports to China.

CNA

Economic Ramifications

EU dairy exports to China were valued at more than €1.6 billion (US$1.9 billion) last year, with the sector facing heightened uncertainty due to the provisional duties.

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Trade analysts warn that while some tariffs are temporary and subject to revision once China’s investigation concludes, the move reflects a broader fragmentation of global trade relationships and escalating protectionist measures on both sides.

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Looking Forward

Negotiations between EU and Chinese officials have continued amid the dispute, particularly over EV tariffs, but remain strained with no immediate resolution in sight.

uk.finance.yahoo.com

As the provisional tariffs take effect, both Brussels and Beijing are bracing for potential retaliation and further negotiations, with implications for exporters, farmers, and global supply chains.

Aaron Joyce

Newswire, L.T.T Media

Newsdesk

23 December 2025