Beijing has announced provisional anti-subsidy tariffs on European dairy products ranging from 21.9% to 42.7%, with enforcement beginning Tuesday. Most companies will face duties near 30%. The decision follows an investigation widely interpreted as retaliation for EU tariffs on Chinese electric vehicles and affects products including protected origin cheeses.
European officials have strongly rejected the tariffs, calling them unwarranted and lacking proper justification. The Commission’s assessment indicates that the investigation is based on questionable allegations and insufficient evidence. Brussels is conducting a detailed examination and preparing formal comments for Chinese authorities.
Trade friction escalated in 2023 when the European Commission initiated an investigation into subsidies for Chinese electric vehicle manufacturers. China has retaliated with tariffs on multiple EU exports including brandy, pork, and dairy. Despite this assertive stance, Beijing has occasionally softened its position, reducing tariffs in final decisions and exempting certain major companies.
The tariff framework creates differentiated rates for about 60 companies. Arla Foods will pay 28.6% to 29.7% on products like Lurpak and Castello. Italy’s Sterilgarda Alimenti faces the lowest rate at 21.9%, while FrieslandCampina’s Belgian and Dutch facilities must pay 42.7%. Companies that refused to participate automatically receive maximum tariffs.
The protective measures come as Chinese dairy producers deal with excess supply and falling prices. Declining birthrates and more frugal consumers have weakened demand. China imported roughly $589 million in affected dairy products last year. The government previously urged domestic producers to reduce milk production and cull older, less productive cattle to stabilize the market.