China has implemented provisional tariffs ranging from 21.9% to 42.7% on select European dairy imports starting Tuesday. Most affected companies will face duties near 30%. The decision follows an anti-subsidy investigation seen as retaliation for EU tariffs on Chinese electric vehicles and affects products from basic milk to premium protected cheeses.
European officials have strongly criticized the tariffs as unwarranted and lacking proper foundation. The Commission’s assessment indicates the investigation is based on questionable allegations without adequate evidence. Brussels is conducting a detailed review and will submit formal comments to Beijing challenging the decision.
The current friction stems from the 2023 European Commission investigation into Chinese EV subsidies. Beijing has systematically responded with tariffs on European brandy, pork, and now dairy products. Despite this aggressive approach, China has occasionally moderated its position, reducing final tariffs below provisional levels and exempting certain major companies.
The tariff structure affects about 60 companies with differentiated rates. Arla Foods, producer of Lurpak and Castello, will pay between 28.6% and 29.7%. Sterilgarda Alimenti from Italy faces the lowest rate at 21.9%, while FrieslandCampina’s Belgian and Dutch operations must pay 42.7%. Companies that declined participation automatically receive maximum tariffs.
The protective measures come as Chinese dairy producers struggle with oversupply and declining prices. Falling birthrates and increasingly frugal consumers have dampened demand. China imported roughly $589 million in affected dairy products last year. The government has urged domestic producers to reduce production and decrease livestock numbers to stabilize the market.
