Chinese Dairy Producers to Benefit from New European Import Tariffs

China has imposed 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 is widely seen as retaliation for EU electric vehicle tariffs and targets products from milk to protected specialty cheeses.
Brussels has condemned the move as unjustified and based on inadequate evidence. The European Commission maintains that the investigation relies on questionable allegations without sufficient proof. Officials are reviewing the decision and preparing formal objections to submit to Chinese authorities.
The trade dispute began in 2023 when Europe launched an investigation into Chinese EV subsidies. Beijing has systematically responded with tariffs on European brandy, pork, and dairy products. However, China has occasionally shown flexibility, reducing provisional tariffs in final rulings and exempting certain major producers like French cognac brands.
Approximately 60 companies face the new tariffs at varying rates. Arla Foods will pay between 28.6% and 29.7%. Sterilgarda Alimenti secured the lowest rate at 21.9%, while FrieslandCampina’s Belgian and Dutch operations face the maximum 42.7%. Non-cooperative companies automatically receive the highest tariff.
The decision is likely to be welcomed by Chinese producers who are grappling with a glut of milk and falling prices as declining birthrates and more cost-conscious consumers weigh on demand. Last year, China imported $589 million in affected dairy products. China urged producers last year to rein in output and reduce the number of older and less productive cows.