Beijing has announced provisional anti-subsidy tariffs of 21.9% to 42.7% on European Union dairy products starting Tuesday. Most affected companies will face duties around 30%. The European Commission has strongly challenged the evidentiary basis for these measures.
Spokesperson Olof Gill stated that the Commission’s assessment is that the investigation is based on questionable allegations and insufficient evidence, and that the measures are therefore unjustified and unwarranted. European officials are examining the decision and will provide comments to Chinese authorities challenging the investigation’s methodology.
Trade tensions escalated in 2023 when Europe began investigating subsidies for Chinese electric vehicle manufacturers. China has responded with tariffs on multiple European products including spirits, pork, and dairy. However, Beijing has occasionally shown flexibility, reducing provisional tariffs in final rulings.
Approximately 60 companies will face the new tariffs at varying rates. Arla Foods will pay between 28.6% and 29.7%. Italy’s Sterilgarda Alimenti secured the most favorable rate at 21.9%, while FrieslandCampina’s Belgian and Dutch operations must pay 42.7%. Non-cooperative companies automatically receive the highest tariff.
Chinese dairy producers are expected to benefit from these protective measures as they deal with excess supply and falling prices. Declining birthrates and budget-conscious consumers have reduced demand. Last year, China imported $589 million in affected dairy products. Authorities previously urged domestic producers to limit output and reduce herd sizes.