Today, China announced that it will impose significantly lower tariffs than previously planned on a range of dairy products imported from the European Union. The new tariffs will range from 7.4% to 11.7% and will take effect starting tomorrow, remaining in place for five years. This move affects a variety of products, including fresh and processed cheeses, as well as certain types of milk and cream. The Chinese Ministry of Commerce indicated that some EU dairy products benefited from subsidies that caused real harm to the Chinese dairy industry.

In December of last year, Beijing temporarily imposed tariffs ranging from 21.9% to 42.7% on certain European dairy products in retaliation against the EU's high tariffs on imported Chinese electric vehicles. This back-and-forth over tariffs highlights the ongoing economic tensions between China and the EU, particularly regarding trade practices and subsidies that impact domestic industries.

This latest change in tariff policy is likely to have significant implications for the dairy trade between the EU and China, potentially benefiting European farmers and producers while also aiming to rectify previous trade imbalances that led to China's protective measures. The situation continues to evolve as both regions maneuver through complex trade relations, and the response from European producers will be crucial to assess the actual impact of these new tariffs over time.