Mike Pearson takes a look at a trade war developing between China and the European Union.

China has launched an anti-dumping investigation into dairy imports by the European Union only days after they said they would place steeper tariffs on electric vehicles from China.

The question is whether or not the new trade war could benefit American dairy farmers.

Just days after the European Union announced the would proceed with 36 percent punitive tariff on Chinese electric vehicles.

China responded with the investigation into the anti-subsidy investigation into diary imports from the European Union. This investigation is a direct result of the tariffs.

The EU is aiming to protect it's automotive industry from unfair competition.

China is fighting back to hit EU farmers where it hurts. The exports to China are significant with the block exports-- 1.7 billion Euros in 2023. The strain could hurt countries like Ireland.

Ireland exports $460 Euros to China in cheese and cream.

If dairy powders get included, it could cause a bigger strain on the dairy industry.

An EU trade delegation is set to visit China soon.

EU farmers are already facing higher input costs and market volatility.

The surplus in the dairy industry could mean lower prices and more pressure in the industry.

China has been ramping up it's own dairy industries and could look to other countries for supplies.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.