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China has announced that it will impose provisional anti-subsidy duties of up to 42.7% on dairy products imported from the European Union, intensifying trade tensions widely viewed as retaliation for the EU’s tariffs on Chinese-made electric vehicles.

The duties, which took effect from Tuesday, 23 December 2025, range from 21.9% to 42.7%, with most affected exporters facing rates just under 30%.

Products targeted include unsweetened milk and cream, as well as fresh and processed cheeses such as French Roquefort and Camembert. Notably, the product list does not include infant formula, one of the EU dairy sector’s highest-margin export categories to China.

China’s Ministry of Commerce said its investigation found evidence that EU dairy exports were subsidised and had caused material injury to domestic producers. The European Commission rejected China’s findings, describing the investigation as being based on "questionable allegations" and "insufficient evidence" and calling the provisional duties "unjustified and unwarranted".

The Commission, which oversees EU trade policy, confirmed it had already lodged a complaint with the World Trade Organization more than a year ago.

A further investigation is due to conclude on Saturday, 21 February 2026. The current decision is provisional and could still be revised in the final ruling.

Trade tensions between Brussels and Beijing escalated in 2023 when the European Commission launched an anti-subsidy investigation into Chinese electric vehicles. Tariffs were imposed in October 2024, triggering what many observers see as retaliatory measures by China against EU exports, including brandy, pork and now dairy.

China’s Ministry of Commerce said negotiations over the EU’s EV tariffs resumed in last month. The European Commission said it continues to explore replacing EV tariffs with minimum price commitments, provided they effectively address subsidy-related harm and are workable.

China imported dairy products worth $589 million that fall under the scope of the investigation in 2024, broadly unchanged from 2023 levels.

Around 60 European companies will be subject to tariffs between 28.6% and 29.7%, including Arla Foods, owner of brands such as Lurpak and Castello.

Italy’s Sterilgarda Alimenti will pay the lowest rate of 21.9%. FrieslandCampina faces the highest duty at 42.7% and said it remains committed to “constructive dialogue” with China’s Ministry of Commerce as the investigation continues.