China has imposed provisional tariffs of 21.9% to 42.7% on select European Union dairy imports following an anti-subsidy investigation. The measures arrive despite resumed negotiations that have failed to bridge fundamental disagreements.
The European Commission has condemned the move as unjustified and based on inadequate evidence. Officials argue that the investigation relies on questionable allegations without sufficient proof. Brussels is reviewing the decision and preparing formal objections.
Trade friction began in 2023 when the European Commission initiated an investigation into Chinese electric vehicle subsidies. China’s ministry of commerce said negotiations over the bloc’s EV tariffs resumed this month. However, the talks were scheduled to end last week and there has been no announcement since. A senior European diplomat in Beijing said last week that major issues remained between the two sides, suggesting fundamental disagreements persist.
Approximately 60 companies face the new tariffs at varying rates based on cooperation. Italy’s Sterilgarda Alimenti faces the lowest rate at 21.9%, while Arla Foods will pay between 28.6% and 29.7%. FrieslandCampina’s Belgian and Dutch facilities must pay 42.7%. Companies that refused to participate automatically receive maximum penalties.
Chinese dairy producers are likely to welcome these measures as they grapple with oversupply and declining prices. Declining birthrates and budget-conscious consumers have weakened demand. Last year, China imported $589 million in affected dairy products. Authorities have encouraged domestic producers to curtail production.