China Escalates Tariff War: New Tariffs on EU Dairy Products Amid Trade Tensions

• China imposes new tariffs (21.9% to 42.7%) on EU dairy products like milk, cheese, and cream, effective April 23.
• The tariffs stem from an anti-subsidy investigation, alleging EU subsidies harm China's domestic dairy industry.
• This move is a retaliatory step following the EU's 45% tariffs on Chinese electric vehicles.
• The escalating trade conflict, initially on EVs, now spans multiple sectors, impacting global supply chains.
• India sees opportunities in dairy exports to China and as an EV manufacturing hub, while facing risks of global trade slowdown.

Why It Matters: China's new dairy tariffs intensify the EU-China trade war, creating global ripples and opportunities for India.