Beijing has announced provisional tariffs reaching up to 42.7% on European Union dairy products following an anti-subsidy investigation widely interpreted as retaliation for EU electric vehicle tariffs. The duties, which begin Tuesday, range from 21.9% to 42.7%, with most companies facing rates around 30%. Protected origin cheeses including French roquefort and Italian gorgonzola are specifically targeted.
Brussels has condemned the decision in strong terms, calling it unjustified and based on questionable evidence. The European Commission spokesperson stated that the investigation’s allegations lack substance and proper evidentiary support. European officials are currently examining the decision and preparing formal comments for Chinese authorities.
The trade conflict began in 2023 when the European Commission launched an investigation into Chinese electric vehicle subsidies. Beijing has responded with tariffs on various EU exports including brandy, pork, and dairy. While maintaining pressure, China has shown some willingness to negotiate, occasionally reducing tariffs in final decisions compared to provisional measures, as demonstrated in last week’s pork ruling.
The new tariff framework affects approximately 60 companies with differentiated rates. Arla Foods will pay tariffs 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 must pay the maximum 42.7%. Companies that didn’t participate in the investigation face automatic maximum tariffs.
Chinese dairy producers are expected to benefit from these protective measures as they deal with oversupply and declining profitability. Reduced birthrates and increasingly cost-conscious consumers have weakened domestic demand. China imported approximately $589 million in affected dairy products last year. Authorities previously urged producers to limit output and reduce older, less productive livestock to address market imbalances.