EU Commission says Chinese tariffs on EU dairy imports were considered unwarranted and unjustified, investigations should not have been initiated, there was not sufficient evidence

• Is to consider all appropriate next steps, including possible proceedings before WTO

The EU Commission's assertion that China’s tariffs on EU dairy imports were unwarranted indicates significant diplomatic friction, potentially escalating tensions between these regions. This may lead to WTO proceedings, influencing trade dynamics and impacting companies like Danone, while also introducing uncertainty for the packaged foods sector within the EURO STOXX 50. Traders should brace for volatility in related equities as market participants assess the implications for trade relations and pricing power in the industry.