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%. However, Monday’s determination is provisional and could be revised when a final ruling is made.
The European Commission has rejected the tariffs as illegitimate and poorly substantiated. Spokesperson Olof Gill stated that the investigation is based on questionable allegations and insufficient evidence. Brussels is examining the decision and will provide comments to Chinese authorities.
Trade tensions escalated in 2023 when Europe began investigating subsidies for Chinese electric vehicle manufacturers. China has responded with tariffs on multiple European products. China significantly lowered provisional tariffs on pork in its final decision last week, suggesting dairy tariffs could also be modified in the final ruling.
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.
