Chinese authorities have implemented provisional tariffs ranging from 21.9% to 42.7% on select European dairy imports effective Tuesday. The measures target products such as milk and cheese, including protected origin brands, creating comprehensive coverage across dairy categories.
Brussels has condemned the decision as unjustified and lacking proper foundation. The European Commission’s assessment indicates the investigation is based on questionable allegations without adequate evidence. Officials are conducting a detailed review and preparing formal objections.
Trade tensions originated in 2023 when the European Commission launched an investigation into Chinese electric vehicle subsidies. Beijing has systematically responded with tariffs on European spirits, pork, and dairy products. The broad product coverage maximizes impact on European exporters.
The tariff structure affects approximately 60 companies with differentiated rates. Arla Foods will pay between 28.6% and 29.7%. Sterilgarda Alimenti from Italy secured the most favorable rate at 21.9%, while FrieslandCampina’s Belgian and Dutch operations face the steepest penalties at 42.7%. Non-participating companies automatically receive maximum tariffs.
Chinese dairy producers stand to benefit as they struggle with surplus production and declining profitability. Reduced birthrates and increasingly price-conscious consumers have dampened demand. China imported approximately $589 million in affected dairy products last year. The government has urged domestic producers to curtail production and reduce livestock numbers.