China expanded its trade confrontation with Europe by imposing provisional duties on EU dairy imports. The tariffs, effective Tuesday, run from 21.9% to 42.7% and cover products like milk, cream, and cheeses, according to a Reuters report carried by Euronews.
Who and why. Beijing’s Ministry of Commerce said it found evidence EU dairy imports were subsidized and harming domestic producers. Brussels pushed back, calling the move “unjustified and unwarranted,” and said it is reviewing the preliminary determination ahead of the probe’s conclusion on Feb. 21, as reported by Reuters. The broader backdrop is the EU’s October 2024 tariffs on China-made electric vehicles, which have driven a tit-for-tat response across categories including brandy, pork, and now dairy.
How it hits. China imported about $589 million of the dairy products under investigation in 2024, similar to 2023, per the same report. Analysts warned the top-tier rate could make EU exports prohibitively expensive, and that substitution to other suppliers is straightforward for many cheese products, which could shift share toward competitors such as New Zealand.
Markets took the move as a near-term win for China’s domestic dairy industry, which has been dealing with oversupply and falling prices. Some listed dairy names jumped intraday after the announcement. Lanzhou Zhuangyuan Pasture closed 10% higher, according to a brief market update.
Next steps are negotiation-heavy. Talks over EV tariffs have resumed, and the EU is still exploring price undertakings as an alternative, but both sides say major issues remain, per Reuters via Euronews. For businesses, the message is clear: diversify China exposure and stress-test pricing, because sector-specific retaliation is becoming the rule, not the exception.
