China has started placing new taxes on some European Union dairy products. This is a big step in a trade disagreement. The EU is very unhappy about this. They said the taxes are not fair. They think China is doing this because the EU looked into Chinese electric cars.
The European Commission is studying China's decision. They will tell China what they think. An EU spokesperson said the investigation into electric cars has weak reasons. This new problem shows that trade between China and the EU is becoming more difficult.
The new taxes are between 21.9% and 42.7%. They will affect about 30% of exports. Milk and different kinds of cheese will be taxed. This might hurt popular European cheeses. These taxes are provisional for now. However, they create worry for the EU dairy business. Trade problems between China and the EU have been growing since 2023.
This is connected to the EU's study of Chinese electric car subsidies. The EU thinks the reasons for taxing dairy are not strong. China has sometimes lowered taxes on other goods before.
These new taxes will cost EU dairy companies money. They also show that countries are using more protectionist measures. Some cheese brands will be directly affected. The full effect on all EU dairy exports is not yet clear. This situation also makes people wonder about future trade. Other important European exports might also be affected.