EU Condemns China’s Dairy Tariffs as Unjustified Trade Action

The European Union (EU) has criticized China’s recent decision to impose tariffs of up to 42.7 percent on certain dairy products imported from EU member states, labeling the move as “unjustified.” The tariffs, which will take effect on December 19, 2024, target a variety of products including fresh and processed cheese, curd, blue cheese, and certain types of milk and cream. This action marks a significant escalation in an ongoing trade dispute between the two economic powers.

China’s Ministry of Commerce announced the tariffs following an anti-subsidy investigation initiated in August 2024 at the request of the Dairy Association of China. Preliminary findings reportedly suggested a connection between EU subsidies and “substantial damage” to China’s domestic dairy sector. In response, European officials have contested these conclusions, asserting that the investigation is based on “questionable allegations and insufficient evidence.” A representative from the European Commission stated, “The measures are therefore unjustified and unwarranted,” emphasizing that the Commission is currently reviewing the investigation’s preliminary findings.

Trade Tensions Rise Over Dairy and Pork Imports

The announcement of these tariffs on EU dairy products follows closely on the heels of China’s decision to impose anti-dumping duties on EU pork imports, which began on December 17, 2024. These duties range from 4.9 percent to 19.8 percent, a reduction from temporary levies that had been as high as 62.4 percent. The ongoing trade tensions have highlighted what many in the EU perceive as an imbalanced economic relationship with China, fueling further diplomatic friction.

This current dispute has its roots in a broader trade spat that intensified in 2024 when the EU proposed imposing significant tariffs on Chinese electric vehicles. European officials argued that Chinese subsidies were undermining local competition. In retaliation, China launched investigations into various EU products, including pork, brandy, and dairy items.

French President Emmanuel Macron has indicated that Europe may consider stronger measures against China, including additional tariffs, if the trade imbalance is not addressed. The EU recorded a trade deficit of more than $350 billion with China in 2024, raising concerns about long-term economic repercussions.

Geopolitical Implications of Trade Disputes

Beyond trade issues, relations between the EU and China have also been strained by differing stances on geopolitical matters, such as Russia’s invasion of Ukraine. The EU has urged China to use its influence to pressure Moscow to cease hostilities, yet Beijing has not shown a willingness to comply.

As both sides navigate these complex issues, the outcome of the current trade disputes may have significant implications for future economic relations and diplomatic efforts. The EU’s response to China’s dairy tariffs and other trade measures will be crucial in shaping the trajectory of this ongoing economic conflict.