China announced it will impose provisional anti-subsidy duties on certain dairy products from the European Union starting Tuesday. The tariffs will range from 21.9% to 42.7%, with most companies paying around 30%. Products targeted include milk and cheese, including famous protected origin brands like French roquefort and Italian gorgonzola. The European Commission slammed the move as “unjustified and unwarranted.” Commission spokesperson Olof Gill said, "The commission’s assessment is that the investigation is based on questionable allegations and insufficient evidence, and that the measures are therefore unjustified and unwarranted." This tariff imposition follows an ongoing trade dispute. The EU had launched an anti-subsidy investigation into Chinese electric vehicles, triggering Beijing to retaliate with tariffs on EU brandy, pork, and now dairy products. China’s Ministry of Commerce claims it found evidence that EU dairy imports were subsidized and harming Chinese producers. About 60 companies, including Arla Foods (owner of brands like Lurpak and Castello), face tariffs between 28.6% and 29.7%. Italy’s Sterilgarda Alimenti SpA gets the lowest rate of 21.9%, while FrieslandCampina Belgium NV and FrieslandCampina Nederland BV pay the highest at 42.7%. Companies not participating in the investigation receive the top rate. China imported $589 million worth of the dairy products under investigation last year, similar to 2023. China’s dairy industry is challenged by oversupply and falling prices caused by declining birth rates and cautious consumers. The country, the world’s third-largest milk producer, has asked farmers to cut milk output and reduce older cow numbers. Negotiations between China and the EU on electric vehicle tariffs resumed this month but have seen no public progress, with major issues still unresolved according to a senior European diplomat in Beijing. Monday’s tariff decision is provisional and may change after a final ruling. China previously lowered provisional tariffs on pork in its final decisions. Some top producers of brandy were partly spared tariffs after China’s earlier investigations. The coming weeks may see more updates as trade tensions between China and the EU continue to shape import and export policies.