China has announced a reduction in tariffs on dairy products imported from the European Union, cutting the maximum rate to 11.7%. The decision comes as the Ministry of Commerce in Beijing concluded an anti-dumping investigation that was initiated two years prior. When the investigation began, interim tariffs ranging from 21.9% to 42.7% were imposed. This tariff reduction will take effect from February 13, according to Reuters.

The investigation was deemed a retaliation by China against the European Union's previous tariffs on Chinese electric vehicles. Beijing was particularly dissatisfied with Brussels' protective measures on EVs and responded by examining the pricing of EU dairy imports. The Chinese Ministry of Commerce remarked that as of Friday, it would reduce tariffs but would impose compensatory charges for five years, capped at 11.7%. These charges are presented by Beijing as measures against the EU’s subsidy policies.

The investigation concluded that some EU dairy products were subsidized, which may have influenced pricing and market fairness. This development indicates ongoing tensions in international trade relations, particularly between China and the EU. The adjustments in tariffs and the introduction of compensatory charges illustrates how trade disputes can shape market dynamics and influence the pricing of products across borders.