Hong Kong. China will impose provisional tariffs of up to 42.7% on dairy products, including milk and cheese, imported from the European Union, the Commerce Ministry said Monday.

The duties, which take effect Tuesday, are based on preliminary findings from an investigation launched in August 2024 as trade tensions between Beijing and Brussels intensified. The probe examined subsidies provided by the EU and its member states to dairy producers.

The investigation was part of tit-for-tat trade actions after the EU began probing Chinese subsidies for electric vehicles and later imposed tariffs of up to 45.3% on China-made EVs.

China has since initiated additional investigations into EU brandy and pork imports and urged the bloc to withdraw its EV tariffs.

According to the Commerce Ministry, the provisional duties on EU dairy imports will range from 21.9% to 42.7% and apply to a range of products, including fresh and processed cheese, blue cheese, milk and cream with a fat content exceeding 10% by weight.

The ministry said its preliminary findings concluded that subsidies provided under the EU’s Common Agricultural Policy, as well as support from individual member states, had harmed China’s domestic dairy industry. The investigation covered subsidies granted by countries including Italy, Ireland and Finland.

The European Commission, which handles trade matters for the EU’s 27 member states, expressed concern over the move.

“The Commission’s assessment is that the investigation is based on questionable allegations and insufficient evidence, and that the measures are therefore unjustified and unwarranted,” spokesperson Olof Gill said.

Gill said the commission is reviewing the reasoning behind the tariffs and plans to submit comments to the Chinese authorities.

China-EU trade relations have been strained, with the trade imbalance increasingly under scrutiny. The EU recorded a trade deficit with China of more than 300 billion euros ($352 billion) last year.

Last week, Beijing announced it would impose tariffs of up to 19.8% on EU pork imports, significantly lower than earlier provisional rates of up to 62.4%, citing allegations of dumping that it said harmed China’s domestic pork industry.

In July, China also announced tariffs of up to 34.9% on EU brandy imports, including French cognac, though several major brands were granted exemptions.

Gill said the EU remains committed to maintaining strong trade and investment ties with China but stressed that longstanding concerns must be addressed.

“For that to happen meaningfully, there is a list of issues the European Union has raised over many months and years, including overcapacity, the unfair use of trade instruments and the trade imbalance,” he said.