China Hits EU Dairy Imports with Anti-Subsidy Tariffs of Up to 42.7%

China has slapped provisional anti-subsidy duties of up to 42.7% on certain dairy products from the European Union, Beijing’s Ministry of Commerce announced on Monday. The move follows a 16-month investigation into EU subsidies that China claims have harmed its domestic industry.

According to the ministry's statement, Chinese investigators reached a “preliminary determination” that the EU provided “substantial subsidies” to its milk and dairy sector, primarily through its Common Agricultural Policy. This support, Beijing argues, resulted in “material injury” to Chinese producers. The new tariffs will affect a range of products, including various types of cheese and cream.

This decision doesn't exist in a vacuum. It's the latest development in a pattern of escalating trade friction between China and the EU, which has recently seen disputes over electric vehicles, medical devices, and other key sectors. Both sides have grown more assertive in using trade tools to protect their economic interests.

While focused on dairy, this move is a clear signal of Beijing's broader trade strategy. By labeling the tariffs as 'provisional,' China leaves the door open for negotiation but simultaneously applies significant pressure on Brussels. It's a calculated tactic to gain leverage in wider trade talks and demonstrate a willingness to retaliate against what it perceives as unfair practices. The EU's response will now be critical in determining whether this dispute de-escalates or spirals into a wider tit-for-tat conflict.