Trade Tensions Escalate: EU Dairy Faces Chinese Scrutiny Amid New Tariffs

European dairy producers are the latest focus in a trade conflict with China as the Chinese Commerce Ministry launches an investigation into EU subsidies that may result in tariffs. This move follows the EU's draft decision to finalize tariffs on Chinese electric vehicles. The escalating tit-for-tat probes raise concerns of a growing trade war.

European milk and cheese producers have become the latest target in a simmering trade war with China.

The Chinese Commerce Ministry announced Wednesday an investigation into subsidies provided by the European Union and its member countries for dairy products. The inquiry could lead to tariffs on their export to China.

The announcement followed the European Union's draft decision to finalize tariffs on electric vehicles made in China. These tariffs, initially introduced last month, have been criticized by the Chinese government and automakers, threatening the global expansion of the industry.

(With inputs from agencies.)