• China imposes provisional duties up to 42.7% on EU dairy products effective December 23.
• The duties result from an anti-subsidy investigation indicating harm to China's domestic dairy industry.
• The EU condemns these measures as "unjustified" and retaliatory in nature.

China has announced **provisional duties** ranging from **21.9% to 42.7%** on various dairy products imported from the European Union, set to take effect on December 23. This decision follows an investigation initiated over a year ago that concluded EU subsidies were damaging to China's domestic dairy sector, according to the Ministry of Commerce. The specific companies affected include Italy's Sterilgarda Alimenti SpA at the lowest rate and FrieslandCampina Belgium N.V. at the highest rate, while around 50 others from various EU countries face duties of up to 28.6% according to Reuters and India Times.

The anti-subsidy duties, which target various dairy items such as cheese and cream, have been described as retaliation against the EU's earlier investigations into Chinese electric vehicles. EU officials criticized the findings of the investigation, asserting, "Our assessment is that the investigation is based on questionable allegations and insufficient evidence," reflecting the ongoing friction in trade relations, as reported by Channel News Asia, Le Monde, and South China Morning Post.

China's commerce ministry emphasized its cautious approach to trade measures, stating no new investigations against the EU have been initiated this year while highlighting a stark disparity in the number of investigations launched by both sides since the trade spat ignited in 2024. The duties also come on the heels of China imposing anti-dumping tariffs on EU pork imports, further complicating the trade dynamics between the two economic powerhouses, as noted by Reuters and Channel News Asia.

The EU, poised for a robust response, asserts that the tariffs are overly punitive and detrimental to both European farmers and consumers. Francoise-Xavier Huard, leading the French National Dairy Federation, warned of "major consequences" for producers who relied on access to the Chinese market. The EU exported over **€1.6 billion** (approximately **US$1.9 billion**) worth of dairy products to China last year, a significant market share that is now under threat, reflecting serious economic implications for affected firms, according to Le Monde and India Times.