China Imposes Provisional Tariffs on EU Dairy Imports Amid Ongoing Trade Tensions
China will impose provisional duties on EU dairy imports starting Tuesday following the first phase of an anti-subsidy investigation. The tariffs range from 21.9% to 42.7%, with most companies facing around 30%. Targeted products include milk and cheese, notably protected origin brands such as Roquefort from France and Gorgonzola from Italy.
The EU Commission has called the decision unjustified and unwarranted, stating it will provide comments as the assessment depends on questioned evidence. These provisional measures can be revised in a final ruling.
The move is widely viewed as retaliation for the European Union's tariffs on electric vehicles. China has previously responded with tariffs on products like pork and brandy and has in some cases adjusted duties downward.
Approximately 60 companies are subject to these tariffs. Arla Foods, known for Lurpak and Castello, faces rates between 28.6% and 29.7%. Sterilgarda Alimenti SpA will pay 21.9%, while FrieslandCampina Belgium/Nederland will face the highest provisional rate of 42.7%. Firms that did not participate in the investigation will be charged the highest tariff rate.
China imported around $589 million worth of dairy products covered by the investigation last year, similar to values in 2023. The decision arises amid broader EU-China trade tensions over electric vehicles. Talks regarding EU EV tariffs resumed this month but with no public progress; a senior European diplomat noted major unresolved issues.
Within China, dairy producers are currently dealing with a milk surplus and falling prices, leading to calls to curb output and reduce the number of older cows.
