HONG KONG (AP) — China will impose temporary tariffs of up to 42.7% on dairy products such as milk and cheese imported from the European Union, the Ministry of Commerce said Monday.
The tariff hikes that took effect on Tuesday are based on preliminary findings from an investigation launched by China’s Commerce Ministry in August 2024 amid rising tensions between Beijing and Brussels. Beijing has scrutinized subsidies provided by EU countries to their dairy products and other agricultural products.
Beijing’s investigation is part of tit-for-tat measures as the European Union investigates China’s subsidies for electric vehicles and subsequently imposed tariffs of up to 45.3% on Chinese-made electric vehicles.
China has launched other investigations into European brandy and pork imports in retaliation for EU tariffs on Chinese electric cars. It also urged the EU to remove tariffs on electric vehicles.
According to the Commerce Department, the temporary tariffs on EU dairy imports range from 21.9% to 42.7% and cover a basket of dairy products, including fresh and processed cheese, blue cheese, milk and cream with a fat content of more than 10%.
The Ministry of Commerce stated that preliminary investigation results determined that subsidies for its dairy products from the EU and EU member states have harmed China’s dairy industry.
The European Commission, which manages trade negotiations and issues on behalf of the 27 EU member states, expressed concern about the tariffs.
“The committee’s assessment is that the investigation is based on dubious accusations and insufficient evidence, and therefore these measures are unreasonable and unfounded,” spokesman Olof Gill said.
Gill told reporters the committee was studying the reasons behind the move and intended to provide comments to Chinese authorities.
China’s Ministry of Commerce said in August 2024 that Beijing’s investigation into EU dairy products covers subsidies given under the EU’s Common Agricultural Policy and subsidies provided to farmers by EU countries such as Italy, Ireland and Finland.
The relationship between China and the EU is tense, and China’s trade surplus with the EU has recently become the focus of attention. The EU’s trade deficit with China is huge, exceeding 300 billion euros ($352 billion) last year.
Last week, Beijing announced tariffs of up to 19.8% on EU pork imports, far lower than the initial tariff of up to 62.4%.
It accuses the EU of dumping pork and pig by-products into the country and selling them at low prices, thereby damaging its domestic pork industry.
In July, Beijing also announced tariffs of up to 34.9% on brandy imports from the EU, including French cognac, although several major brandy brands have been exempted.
Gill said that the EU remains committed to maintaining good trade and investment relations with China.
“But in order for this goal to actually be achieved, the EU has been having a series of problems and concerns for months or even years that we need China to address, including overcapacity, unfair use of trade tools, trade deficits, etc.,” he said.