China has imposed provisional tariffs of 21.9% to 42.7% on select European Union dairy imports following an anti-subsidy investigation. The duties, effective Tuesday, largely result in rates around 30% for most companies. Products such as milk and cheese, including protected origin brands such as French roquefort and Italian gorgonzola, are specifically targeted.
Brussels has strongly objected to the decision, calling it unjustified and based on insufficient evidence. The European Commission spokesperson emphasized that the investigation relies on questionable allegations. European officials are reviewing the tariffs and preparing formal objections.
These tariffs represent another development in trade tensions that began in 2023 when Europe started investigating Chinese EV subsidies. Beijing has systematically responded with tariffs on European spirits, pork, and now dairy products. Despite maintaining pressure, China has occasionally demonstrated flexibility in final rulings.
The new tariff framework creates differentiated rates for about 60 companies. Arla Foods will pay 28.6% to 29.7% on brands like Lurpak and Castello. Sterilgarda Alimenti from Italy received the most favorable treatment at 21.9%, while FrieslandCampina’s operations face the maximum 42.7%. Non-participating companies automatically receive the highest tariff.
Chinese dairy producers stand to benefit as they grapple with oversupply and declining prices. Reduced birthrates and increasingly budget-conscious consumers have dampened demand. China imported approximately $589 million in affected dairy products last year. Authorities have encouraged domestic producers to curtail production and reduce livestock numbers to stabilize the market.