China threatens new tariffs on EU dairy and pork EU to announce revised plans to impose new increased tariffs on electric cars (EVs) made in China.
China is now threatening new tariffs on dairy imports from Europe, after targeting EU pork imports in June.
China has announced that it has launched a formal investigation into European product subsidies. of milk which are imported into the country from Europe. This move was a direct reaction to the Commission's decision to reassign extra duties to EVs that are “Made in China”. The EU currently imposes 10% tariffs on such vehicles from China.
Proposed additional tariffs on EVs from China
The Commission now proposes to impose additional tariffs of 9% on Tesla, 36.3% on SAIC, 19.3% on Geely, 17% on BYD, 36.3% on the other non-cooperators – as it characterizes them in the investigation that did the EU- companies and 21.3% in the so-called partner companies. In order for these new increased tariffs to take effect, the EU countries will have to decide with a vote, which is expected to take place by November.
EU dairy products targeted
Beijing's investigation targets several European-made dairy products, including fresh and processed cheese, China's commerce ministry said. China has already announced since June an anti-dumping investigation into EU pork exports to the country.
The European Dairy Inquiry will review twenty different EU subsidy schemes, including some under the Common Agricultural Policy. The investigation is expected to be completed within a year and may be extended for another six months under special circumstances. This essentially gives more time for negotiations between the two sides.
In particular, the twenty dairy subsidy programs that China will consider from across the 27-nation EU bloc concern Austria, Belgium, Croatia , the Czech Republic, Finland, Italy, Ireland and Romania, China's Ministry of Commerce said.
The EU was China's second largest source of dairy products accounting for at least 36% of total import value in 2023, behind only New Zealand, according to Chinese customs data.
The EU exported 1, 7 billion euros of dairy products in China in 2023, up from 2 billion in 2022, according to data from the European Commission's Directorate-General for Agriculture and Rural Development, which cites Eurostat, Reuters reported.
The combined value of EU pork and dairy exports to China – goods likely to be affected by tariffs – is less than the value of China's electric vehicle exports to the EU, which is estimated at around $13.5 billion for 2023, sources at the Economist Intelligence Unit said.
Diplomatic tussle
The European Commission has announced it will “strongly defend the interests of the EU dairy industry” , according to spokesman Olof Gill. It will intervene as appropriate to ensure the investigation complies with relevant World Trade Organization rules, he said.
Following the EU's new announcement of tariffs on Chinese-made electric vehicles, China's Ministry of Commerce It said it was “strongly opposed and deeply concerned” by Brussels' findings and pledged to take all necessary measures to protect Chinese companies.
