Chinese authorities have announced provisional tariffs of up to 42.7% on certain European Union dairy imports following an anti-subsidy investigation. The measures, effective Tuesday, range from 21.9% to 42.7%, with most companies paying around 30%. The decision continues China’s pattern of selective enforcement in trade disputes.
The European Commission has rejected the tariffs as illegitimate and poorly substantiated. Officials maintain that the investigation is based on questionable allegations without sufficient supporting evidence. Brussels is examining the decision and preparing formal comments.
Trade friction escalated in 2023 when Europe began investigating subsidies for Chinese electric vehicle manufacturers. China has responded with tariffs on multiple European products. However, Beijing has reduced or limited the impact of its tariffs several times, including partly sparing the major cognac producers Pernod Ricard, LVMH and Rémy Cointreau after its brandy investigation.
Approximately 60 companies will face the new tariffs at varying rates. Arla Foods will pay between 28.6% and 29.7%. Sterilgarda Alimenti secured the most favorable rate at 21.9%, while FrieslandCampina’s Belgian and Dutch operations must pay 42.7%. Non-cooperative companies automatically receive the highest tariff.
Chinese dairy producers stand to benefit as they grapple with oversupply and declining prices. Declining birthrates and more cost-conscious consumers have weakened demand. Last year, China imported $589 million in affected dairy products. Authorities have encouraged domestic producers to curtail production and reduce livestock numbers to stabilize prices.