China has new taxes for milk products from Europe. The taxes started on Tuesday. They are big, from 21.9% to 42.7%. This is because Europe put taxes on China's electric cars. China and Europe are having a trade fight.
Europe's leaders say China is wrong. They think China's reasons are not good. Europe thinks China has no good proof. Europe checked carefully before taxing electric cars.
China put taxes on other Europe things. They taxed brandy and pork. The pork taxes are now smaller. But the new milk taxes are worse. They are on famous cheeses too.
The main reason is Europe's electric car taxes. China is now fighting back. The milk taxes come as they talk about cars. China may want Europe to change its mind. Talks were supposed to end last week. No news yet.
Europe's milk companies will feel this. The taxes will hurt their sales. This shows trade fights hurt big businesses. It also shows how connected countries are. Big Europe companies will watch this.
The taxes are not final. They can change. China has changed rules before. But there is not much trust now. We do not know when this will end. Europe leaders want to talk. They want to make trade easier. The next few weeks will show more.