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 around 30%. The measures follow an anti-subsidy investigation seen as retaliation for EU tariffs on Chinese electric vehicles and affect various dairy products including protected origin cheeses.
The European Commission has rejected the tariffs as illegitimate and poorly substantiated. Officials argue that the investigation is based on questionable claims and insufficient evidence. Brussels is examining the decision closely and preparing formal comments to challenge the findings with Chinese authorities.
Trade tensions originated in 2023 when the European Commission launched an investigation into Chinese EV subsidies. Beijing has responded with tariffs on European spirits, pork, and dairy. China’s ministry of commerce said negotiations over the bloc’s EV tariffs resumed this month, though talks were scheduled to end last week with no announcement since. A senior European diplomat in Beijing said last week that major issues remained between the two sides.
The tariff structure affects approximately 60 companies with differentiated rates. Arla Foods will pay 28.6% to 29.7%. Italy’s Sterilgarda Alimenti faces the lowest rate at 21.9%, while FrieslandCampina’s Belgian and Dutch operations must pay 42.7%. Companies that declined participation automatically receive maximum tariffs.
Chinese dairy producers are expected to benefit from these protective measures as they struggle with oversupply and declining prices. Falling birthrates and budget-conscious consumers have reduced demand. Last year, China imported $589 million in affected dairy products. Authorities previously urged domestic producers to scale back output and reduce livestock numbers to stabilize the market.