China-EU trade tensions deepen as Beijing slaps new tariffs on cheese and cream imports – Firstpost

China-EU trade tensions deepen as Beijing slaps new tariffs on cheese and cream imports – Firstpost

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The levies, which take effect from Tuesday, are part of an anti-subsidy investigation Beijing says shows EU support for its dairy industry is harming China’s own producers

China has announced provisional tariffs on a range of European Union dairy products, including cheese and cream, marking the latest escalation in a widening trade dispute with the bloc.

The levies, which take effect from Tuesday, are part of an anti-subsidy investigation Beijing says shows EU support for its dairy industry is harming China’s own producers, as per Reuters.

The move targets fresh and processed cheeses, curd, blue cheese, milk and high-fat cream — all key exports from EU countries. It is the latest step in a series of retaliatory trade measures between China and the EU, which have previously clashed over electric vehicles and other imports.

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China’s commerce ministry said the tariff range—spanning roughly 21.9% to 42.7%—comes after a probe launched in August 2024. According to the ministry, “preliminary findings showed a link between EU subsidies and substantial damage to China’s domestic dairy industry.”

That investigation was a result of complaints from Chinese dairy groups and mirrored earlier EU action against subsidised electric vehicle imports from China. In response, Beijing has conducted similar anti-subsidy and anti-dumping probes into European brandy, pork and now dairy products.

EU voices strong objection

EU officials were quick to denounce China’s decision. A European Commission trade spokesman, as quotes by the Times of Malta, said the bloc’s view is clear: “Our assessment is that the investigation is based on questionable allegations and insufficient evidence, and that the measures are therefore unjustified and unwarranted.”

Brussels argues that the evidence China has presented so far does not justify such steep levies, and it is pushing for further dialogue through international trade mechanisms. The EU continues to advocate for reforms in how trade instruments are used, particularly around subsidies and market access.

The dairy tariffs are just the latest flashpoint in China-EU trade relations.

Talks between the two sides have resumed in recent weeks, especially around disagreements over electric vehicle tariffs and broader market-access issues, but major differences remain.

Beijing’s action comes amid what analysts describe as tit-for-tat measures that could strain an already fragile relationship.

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