China has concluded the first phase of an anti-subsidy investigation by imposing provisional tariffs between 21.9% and 42.7% on European dairy imports. The measures, effective from Tuesday, predominantly result in duties around 30% for most companies. Products affected include milk, cheese, and protected designation items like French roquefort and Italian gorgonzola.
Brussels has strongly objected to the decision, characterizing it as unwarranted and lacking legitimate justification. The European Commission maintains that China’s investigation is based on questionable allegations without sufficient supporting evidence. Officials are reviewing the tariffs and preparing a comprehensive response for Chinese authorities.
The dispute originated in 2023 when the European Commission launched an investigation into Chinese electric vehicle subsidies. Beijing has systematically retaliated with tariffs on European brandy, pork, and now dairy products. Despite maintaining pressure, China has occasionally demonstrated flexibility by reducing final tariffs below provisional levels and exempting major producers in some sectors.
The new tariff structure affects around 60 companies with differentiated rates. Arla Foods will pay between 28.6% and 29.7%. Italy’s Sterilgarda Alimenti received the most favorable treatment at 21.9%, while FrieslandCampina’s operations in Belgium and the Netherlands face the steepest penalties at 42.7%. Companies that didn’t participate in the investigation automatically receive maximum tariffs.
The protective measures arrive as Chinese dairy producers struggle with surplus production and declining profitability. Falling birthrates and more price-conscious consumers have reduced demand for dairy products. China imported approximately $589 million in affected dairy products last year. The government previously urged producers to curtail milk production and reduce the number of older, less efficient cattle to stabilize prices.