Get ready for a shake-up in the global dairy aisle! China has announced provisional tariffs of up to 42.7% on certain dairy products imported from the European Union. This move, which includes everything from milk to classic French blue cheeses like Roquefort, is widely seen as a direct response to the EU’s recent tariffs on Chinese electric vehicles.
Starting this Tuesday, most European dairy companies will face duties averaging around 30%. While some will pay as low as 21.9%, others could see rates climb to 42.7%, significantly impacting their access to the lucrative Chinese market. This isn’t the first time China has pushed back; similar measures have targeted EU brandy and pork in recent months, all stemming from escalating trade tensions that began with the EU’s anti-subsidy probe into Chinese EVs last year.
It’s important to note that these tariffs are provisional and could still be adjusted. China has shown flexibility in the past, for instance, lowering pork tariffs in a final decision. Negotiations over the EV tariffs are ongoing, but a senior European diplomat recently stated that major issues remain unresolved.
For Chinese dairy producers, however, this news might be a relief. Facing an oversupply of milk due to declining birth rates and more cost-conscious consumers, domestic producers have been grappling with falling prices. These new tariffs could help level the playing field, making local products more competitive. This latest development underscores the growing economic friction between two major global powers, with implications for industries and consumers worldwide.
