Why China has slapped 43% tariff on EU dairy products
What's the story
China has announced its decision to impose provisional tariffs of up to 42.7% on dairy products imported from the European Union (EU). The move comes in response to an investigation into subsidies provided by EU countries for their dairy and other agricultural products. The new duties will come into effect from tomorrow, according to China's Commerce Ministry.
Impact scope
Tariffs cover a range of dairy products
The provisional tariffs will apply to a wide range of dairy products, including fresh and processed cheese, blue cheese, milk, and cream with more than 10% fat content by weight. The decision is part of China's broader strategy in response to the EU's investigation into Chinese subsidies on electric vehicles (EVs) and subsequent tariffs as high as 45.3% on China-made EVs.
Probe details
China's investigation into EU dairy subsidies
The Commerce Ministry's investigation into EU dairy products looked at subsidies under the EU's Common Agricultural Policy and those provided to farmers by countries like Italy, Ireland, and Finland. The preliminary findings suggested that these subsidies had harmed China's domestic dairy industry.
Trade tensions
China's recent tariff decisions and trade relations with EU
Last week, China announced tariffs of up to 19.8% on EU pork imports, a far cry from the initial duties of up to 62.4%. The decision came after Beijing accused the EU of dumping pork and pig by-products at cheap prices, hurting its domestic industry. In July, China also announced tariffs of up to 34.9% on brandy imported from the EU, including cognac from France.