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China Imposes Steep Tariffs On EU Cheese And Cream In Trade Dispute

Photo by Azzedine Rouichi / Unsplash

China has imposed provisional anti-subsidy tariffs of up to 42.7 percent on select European cheese and cream imports, escalating a broader trade dispute with the European Union, according to China’s Ministry of Commerce.

Chinese officials said a 16-month investigation found that EU dairy producers benefited from substantial government subsidies, mainly through the bloc’s agricultural support programs.

Beijing claims those subsidies caused material harm to Chinese dairy producers. The new duties, ranging from 21.9 to 42.7 percent, take effect Tuesday and will be collected as cash deposits.

The move follows earlier Chinese investigations into European farm products after the EU imposed tariffs on Chinese-made electric vehicles.

France is expected to be the hardest hit, as it is Europe’s largest exporter of the affected dairy products to China, Chinese customs data show.

European cheese exports to China were already under pressure, falling 15 percent earlier this year. The European Commission has not yet responded.

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