The Chinese Ministry of Commerce has implemented provisional anti-subsidy tariffs on European dairy products ranging from 21.9% to 42.7%, with enforcement beginning Tuesday. Most affected companies will face duties near 30%. The targeted products include everyday dairy items as well as premium cheeses with protected geographical indications, such as roquefort from France and gorgonzola from Italy.
European officials have strongly objected to the decision, characterizing it as unwarranted and without proper justification. Spokesperson Olof Gill stated that the Commission’s analysis reveals the investigation is based on questionable claims and inadequate evidence. The EU is preparing a formal response challenging the Chinese findings and methodology.
These tariffs represent the continuation of a trade dispute that ignited in 2023 when Europe began investigating subsidies for Chinese EV manufacturers. Beijing has systematically responded with its own investigations and tariffs on European brandy, pork, and now dairy products. However, China has shown pragmatism in some cases, reducing tariffs from provisional to final decisions and exempting certain major companies from full penalties.
The new tariff structure creates a tiered system affecting around 60 companies. Danish dairy giant Arla Foods will pay between 28.6% and 29.7% on its products. Italian company Sterilgarda Alimenti received the lowest rate at 21.9%, demonstrating possible cooperation benefits. FrieslandCampina’s Belgian and Dutch operations face the harshest treatment at 42.7%, while companies that declined to participate in the investigation automatically receive maximum tariffs.
Chinese domestic dairy producers are likely to welcome these protective measures amid challenging market conditions. The industry has been dealing with oversupply and falling prices, exacerbated by declining birthrates and consumers watching their spending more carefully. China imported roughly $589 million in affected dairy products last year. Authorities have already pushed domestic producers to reduce milk production and decrease the number of older, less efficient cattle.