Beijing Slaps Heavy Tariffs on European Dairy Products

China has imposed steep new tariffs of up to 42.7% on a wide range of dairy products imported from the European Union, escalating trade tensions between Beijing and Brussels and raising concerns across the agricultural sector.

The duties apply to products including milk, cream and various cheeses, with most European exporters facing tariff rates of around 30%. Higher penalties have been imposed on companies that were deemed non-cooperative during a Chinese trade investigation, while a smaller number of firms received lower rates.

Chinese authorities said the move follows an investigation into alleged subsidies for European dairy producers, which they claim harmed China’s domestic dairy industry. The tariffs are being introduced as provisional measures while broader trade discussions continue.

European officials strongly criticized the decision, arguing that the investigation was unfair and that the new duties amount to protectionism. They warned that the tariffs could damage long-standing trade ties and hurt farmers and food producers across several EU member states.

The dairy industry is particularly exposed, as China has been a key growth market for European exporters in recent years. Producers now face higher costs and reduced competitiveness, prompting some companies to consider scaling back shipments or shifting focus to alternative markets.

The move comes amid a series of trade disputes between China and the EU, reflecting deeper disagreements over industrial policy, subsidies and market access. Analysts say the latest tariffs increase the risk of further retaliatory measures and complicate efforts to stabilize economic relations.

As both sides weigh their next steps, the new duties highlight the fragile state of global trade and the growing willingness of major economies to use tariffs as leverage in broader political and economic disputes.

Author: M.J