China "targets" the EU again - imposes temporary tariffs on dairy products

China will impose temporary tariffs of 21.9% to 42.7% on certain dairy products imported from the European Union starting December 23, following an investigation that began more than a year ago.
Preliminary evidence shows that imported dairy products originating in the EU are subsidized, causing significant damage to the domestic industry, the Chinese Ministry of Commerce said.
Trade tensions with the EU erupted in 2023 when the European Commission launched an investigation into subsidies for electric vehicles made in China. Beijing later launched investigations into imports of cognac, pork and dairy products from the EU, in what appeared to be retaliation for Europe's decision on electric vehicles.
The EU firms hit by the lowest rate of 21.9% were Italy's Sterilgarda Alimenti SpA, while FrieslandCampina Belgium NV and FrieslandCampina Nederland BV will pay the highest rate of 42.7%, according to the Chinese commerce ministry.
All other EU firms that were not subject to China's investigation will also have to pay the higher tax rate.
The European Union was the second-largest source of dairy products to China, behind only New Zealand, Chinese customs data show. In particular, China was the second-largest destination for skimmed milk powder and the fourth-largest for both butter and whole milk powder.
China has exercised prudence and restraint in using trade compensation measures, a Chinese official said.
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