Chinese authorities have implemented provisional tariffs ranging from 21.9% to 42.7% on select European dairy imports effective Tuesday. Most companies will face duties near 30%. The measures follow an anti-subsidy investigation seen as retaliation for EU electric vehicle tariffs.
Brussels has condemned the decision as unjustified and lacking proper foundation. The European Commission’s assessment indicates the investigation is based on questionable allegations without adequate evidence. Officials are conducting a detailed review and preparing formal objections.
Trade tensions originated in 2023 when the European Commission launched an investigation into Chinese electric vehicle subsidies. Beijing has systematically responded with tariffs on European spirits, pork, and dairy products. Despite this aggressive approach, China has occasionally demonstrated flexibility by reducing final tariffs.
The tariff structure affects approximately 60 companies with differentiated rates. Arla Foods will pay between 28.6% and 29.7%. Sterilgarda Alimenti from Italy secured the most favorable rate at 21.9%, while FrieslandCampina’s Belgian and Dutch operations face the steepest penalties at 42.7%. Non-participating companies automatically receive maximum tariffs.
The decision is likely to be welcomed by Chinese producers grappling with excess supply and falling prices. China, the world’s third-largest milk producer, urged producers last year to rein in output and reduce the number of older and less productive cows. Declining birthrates and more cost-conscious consumers have dampened demand. Last year, China imported $589 million in affected dairy products.