China has moved to impose provisional levies of up to 42.7 percent on selected dairy products imported from the European Union, opening a new front in a widening trade dispute between Beijing and Brussels. The duties, applied as cash deposits at the border, follow the first phase of a Chinese anti subsidy investigation into EU dairy exports and take effect from 23 December 2025. Products covered include milk, cream and a range of cheeses, with most EU exporters facing levies of around 30 percent and company specific rates climbing to the maximum level.

China’s commerce authorities launched the investigation in August 2024, examining whether subsidised European dairy products had caused substantial damage to China’s domestic dairy sector. Beijing has presented the provisional levies as a necessary interim measure while the probe continues, with the deposits collected pending a final ruling expected in early 2026. The duties are structured as anti subsidy measures and vary depending on the exporter’s level of cooperation with Chinese investigators, with non cooperating firms subject to the highest rates.

The scope of the measures covers a broad range of dairy products, including fresh and processed cheeses as well as unsweetened milk and cream. Major exporters from across the bloc are affected, with large cooperative producers among those hit by higher rates, while some smaller …