China has declared it will impose provisional tariffs of up to 42.7% on dairy products imported from the European Union, marking a significant escalation in an ongoing trade dispute. The new duties, announced by China's Commerce Ministry on Monday 22 December 2025, are set to take effect from Tuesday.
Details of the New Tariffs and Investigation
The temporary tariffs will range from 21.9% to 42.7% and will apply to a wide array of dairy goods. The list includes fresh and processed cheese, blue cheese, milk, and cream with a fat content exceeding 10% by weight.
This decision stems from a probe launched by Beijing in August 2024, which reviewed subsidies provided by the EU and individual member states under the bloc's Common Agricultural Policy. The investigation specifically examined support given to farmers in countries including Italy, Ireland, and Finland.
The Commerce Ministry stated that preliminary findings determined these subsidies had caused damage to China's domestic dairy industry, justifying the retaliatory measures.
A Tit-for-Tat Trade Dispute
Beijing's move is widely seen as a direct countermeasure to actions taken by Brussels. The probe into EU dairy was initiated as the European Union investigated Chinese subsidies for electric vehicles (EVs). The EU subsequently imposed tariffs as high as 45.3% on China-made EVs.
This dairy tariff announcement follows other recent retaliatory actions by China targeting European imports:
- Last week, Beijing announced tariffs of up to 19.8% on EU pork imports, significantly lower than preliminary rates of 62.4%, accusing the EU of dumping.
- In July, tariffs of up to 34.9% were announced on EU brandy, including French cognac, though some major brands received exemptions.
China has consistently urged the EU to scrap its EV tariffs, but the bloc has so far maintained its position.
Broader Context and Consequences
The trade relationship between China and the EU is increasingly fractious. A substantial trade imbalance is at the heart of the tensions, with the EU running a significant deficit with China. This deficit exceeded 300 billion euros (approximately $352 billion) last year, putting the Chinese trade surplus firmly in the spotlight.
The imposition of these dairy tariffs represents a strategic strike against a key European agricultural export. It raises the stakes in the dispute, potentially affecting prices and supply chains for European dairy producers and Chinese consumers alike. The move signals Beijing's readiness to leverage its import market across multiple sectors in response to European trade defences.
With the provisional duties now scheduled, attention turns to whether this escalation will force new negotiations or lead to a further hardening of positions in the ongoing trade standoff between the two economic giants.
