China Imposes Up to 42.7% Tariff on EU Dairy Products in Retaliatory Move
Executive Summary
Key insights and market outlook
China has imposed temporary tariffs of up to 42.7% on certain EU dairy products effective December 23, 2025, as a retaliatory measure against EU's electric vehicle tariffs. The tariffs, ranging from 21.9% to 42.7%, target products including milk and cheese, with most companies facing around 30% tariffs 1
Deep Dive Analysis
China Imposes Retaliatory Tariffs on EU Dairy Products
Escalation in Trade Tensions
China has implemented temporary tariffs ranging from 21.9% to 42.7% on various European Union dairy products starting December 23, 2025. This decision follows the completion of the preliminary anti-subsidy investigation, which China views as a response to the EU's tariffs on Chinese electric vehicles 1
Tariff Structure and Impact
The tariffs will be applied based on the level of subsidy determined by China's Tariff and Customs Commission. Companies that cooperated during the investigation will face a 28.6% tariff, while non-cooperative companies will be subject to the highest rate of 42.7% 2
Reactions from Both Sides
The European Commission has strongly criticized China's decision, calling it 'unreasonable and unjustified'. Olof Gill, spokesperson for the European Commission, stated that the investigation was based on 'dubious claims and inadequate evidence'. China, however, maintains that EU subsidies have caused significant harm to its domestic dairy industry 1
Trade Implications
This move is part of an escalating trade dispute between China and the EU, which began in 2023 when the European Commission launched an anti-subsidy investigation into Chinese electric vehicles. China has since imposed tariffs on EU imports including brandy, pork, and now dairy products. The current tariffs are temporary and may be revised before a final decision is made 1
Source References
Story Info
Topics Covered
Key Events
China EU Trade Tariff Escalation
Dairy Product Tariff Implementation