China’s Ministry of Commerce announced on Monday, December 22, that provisional duties of up to 42.7% will be imposed on certain European Union (EU) dairy imports, following the conclusion of the first phase of an anti-subsidy investigation.
The measures, effective Tuesday, December 23, target products including milk and cheese, such as French roquefort and Italian gorgonzola. Most affected companies will face tariffs of approximately 30%.
The ministry stated that the investigation found evidence EU dairy products were subsidised, undercutting domestic producers and harming China’s milk industry. About 60 European companies, including Arla Foods, will pay tariffs ranging from 28.6% to 29.7%. Italy’s Sterilgarda Alimenti will face 21.9%, while FrieslandCampina Belgium and FrieslandCampina Nederland will pay 42.7%.
Firms that did not cooperate with the probe will be subject to the highest tariffs.
The decision comes amid broader trade tensions with the EU, which began in 2023 when the European Commission launched an anti-subsidy investigation into Chinese electric vehicles. Beijing has previously imposed tariffs on EU brandy and pork in what analysts describe as measured retaliatory actions. In some cases, major producers, such as Pernod Ricard, LVMH and Rémy Cointreau, were partly exempted.
Domestic producers are expected to welcome the move as China faces a milk surplus, declining birthrates, and cost-conscious consumer demand. Last year, authorities encouraged farmers to reduce herd sizes and limit output to stabilize the market.
Negotiations between Beijing and Brussels over EV tariffs resumed this month, though major issues remain unresolved, according to a senior European diplomat. The provisional nature of the new duties allows for possible revisions after the final ruling.
Asia Pacific Newslog 