The Chinese Ministry of Commerce has imposed provisional tariffs of up to 42.7% on select European dairy imports following an anti-subsidy investigation. The duties, effective Tuesday, range from 21.9% to 42.7%, with most companies facing rates around 30%. The move is widely interpreted as retaliation for EU tariffs on Chinese electric vehicles and targets various dairy products including protected origin cheeses.
The European Commission has issued a sharp rebuke, calling the tariffs unjustified and unwarranted. Spokesperson Olof Gill stated that the investigation is based on questionable allegations and insufficient evidence. European officials are examining the decision closely and preparing formal objections to submit to Chinese authorities.
Trade friction between the EU and China began in 2023 when Europe launched an investigation into subsidies for Chinese electric vehicle manufacturers. Beijing has responded with tariffs on multiple European products including brandy, pork, and dairy. However, China has shown some flexibility, occasionally reducing provisional tariffs in final rulings and exempting certain companies, as seen with major cognac producers.
The tariff structure affects around 60 companies with varying rates based on cooperation. Arla Foods will pay 28.6% to 29.7% on products including Lurpak and Castello brands. Italy’s Sterilgarda Alimenti faces the lowest rate at 21.9%, while FrieslandCampina’s Belgian and Dutch operations must pay 42.7%. Companies that didn’t participate automatically receive maximum tariffs.
The measures arrive as Chinese dairy producers deal with oversupply and falling prices. Declining birthrates and more frugal consumers have weakened domestic demand. China imported approximately $589 million in affected dairy products last year. The government previously encouraged producers to reduce milk production and cull older, less efficient cattle to stabilize the market.