China has unveiled provisional tariffs on European Union dairy products ranging from 21.9% to 42.7%, following an anti-subsidy investigation seen as retaliation for EU electric vehicle tariffs. The measures take effect Tuesday, with most companies paying around 30%. Products affected include milk, cheese, and protected designation items like French roquefort and Italian gorgonzola.
European officials have rejected the tariffs as baseless and inappropriate. The European Commission maintains that China’s investigation relies on dubious allegations and lacks sufficient evidence. Officials are conducting a detailed review and will provide formal comments to Chinese authorities challenging the decision.
The dispute originated in 2023 when the European Commission initiated an investigation into Chinese EV subsidies. Beijing has systematically responded with tariffs on European brandy, pork, and dairy products. Despite this assertive stance, China has occasionally moderated its position, reducing tariffs in final decisions and partially exempting major producers like French cognac brands.
Approximately 60 companies will face the new tariffs at differentiated rates. Arla Foods will pay between 28.6% and 29.7%. Sterilgarda Alimenti secured the lowest rate at 21.9%, while FrieslandCampina’s Belgian and Dutch operations face the maximum 42.7%. Companies that declined to participate in the investigation automatically receive the highest tariff.
Chinese dairy producers are likely to welcome these measures as they struggle with oversupply and declining prices. Falling birthrates and budget-conscious consumers have reduced demand for dairy products. Last year, China imported $589 million in affected dairy products. Authorities previously urged domestic producers to curtail output and reduce the number of older, less productive cattle.