Chinese authorities have announced provisional tariffs of up to 42.7% on certain European Union dairy imports following an anti-subsidy investigation. The measures, effective Tuesday, range from 21.9% to 42.7%, with most companies paying around 30%. The decision represents the latest action in China’s systematic trade retaliation.
The European Commission has rejected the tariffs as illegitimate and poorly substantiated. Officials maintain that the investigation is based on questionable allegations without sufficient supporting evidence. Brussels is examining the decision and preparing formal comments.
Trade tensions erupted in 2023 when the European Commission launched an anti-subsidy investigation into Chinese-made electric vehicles. Beijing has imposed tariffs on imports of EU brandy, pork and now dairy, measures seen as retaliatory. However, as it did with pork, Beijing has reduced or limited the impact of its tariffs several times, including partly sparing major cognac producers.
Approximately 60 companies will face the new tariffs at varying rates. Arla Foods will pay between 28.6% and 29.7%. 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.
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