China slaps tariffs of up to 42.7% on EU dairy products, alleging ‘damage’ to the domestic dairy industry

China on Monday announced tariffs of up to 42.7% on dairy products from the European Union, following the results of an anti-subsidy investigation that began in August 2024.

In a statement by the country’s Ministry of Commerce, China said that EU subsidies for dairy products had caused “substantial damage” to China’s domestic dairy industries.

The tariffs are set to take effect on Dec. 23, the ministry said, and the rates would be determined by the amount of “ad valorem subsidy rates” from the country’s Customs Tariff Commission.

The tariffs range from 21.9% to 42.7%, with companies “who cooperated with the investigation” subject to tariffs of 28.6%, and those that “did not cooperate” facing the top rate of 42.7%, according to a statement from a Commerce Ministry official.

Products that will be affected include fresh, processed and blue cheeses — such as the famous Roquefort blue cheese aged in the caves of Roquefort-sur-Soulzon, France — as well as some kinds of milk and cream.

The latest tariffs mark an escalation in trade tensions between the regions, which flared up when Brussels slapped tariffs of up to 45% on electric vehicles imported from China in October last year.

Separately, the bloc in November challenged China’s imposition of tariffs on imports of EU brandy at the World Trade Organisation, saying “China’s provisional measures on EU brandy are not in line with WTO rules.”

An EU spokesperson described the measures as “unjustified and unwarranted” on Monday, according to Reuters, and said the European Commission, the EU’s executive arm, would be providing comments to the Chinese authorities.

The Commission was not immediately available to comment when contacted by CNBC Monday.

Last week, Beijing sharply cut its duties on pork imports and pig by-products from the European Union, with new tariff rates ranging from 4.9% to 19.8% on dozens of European pork exports.

It comes after the country in September imposed temporary anti-dumping tariffs of up to 62.4% in the form of cash deposits on pork imports from the EU.

— CNBC’s Anniek Bao contributed to this report.

Correction: This article has been updated to reflect that China’s tariffs will come into force on Dec. 23.