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China Sets 11.7% Tariff on EU Dairy as Europe’s Trade Surplus Narrows

The flare-up follows a French advisory push for blanket tariffs that Beijing denounced through a state‑affiliated channel.

Overview

  • Eurostat data show the EU’s December trade surplus slipped to €12.9 billion, with exports to the U.S. down 12.6% and the trade deficit with China widening to €26.8 billion.
  • Beijing finalized an anti-subsidy ruling to levy 11.7% duties on EU dairy from Feb. 13, lowering earlier provisional ranges of 21.9% to 42.7% after talks with European industry groups.
  • The European Commission said it will consider appropriate next steps, including possible WTO proceedings, arguing China provided insufficient evidence for its dairy probe.
  • A CCTV-linked social media account warned China could investigate French wine or apply reciprocal tariffs if Paris advances EU-wide duties on Chinese goods.
  • France said the 30% blanket tariff proposal is not government policy, as China separately signaled flexibility for case-by-case EV arrangements following the EU’s VW Tavascan exemption tied to price and volume.