BEIJING – China announced on Monday it will impose provisional anti-subsidy duties of up to 42.7% on dairy products imported from the European Union, the latest escalation in a series of tit-for-tat trade measures between the two economic giants.
The Chinese Ministry of Commerce stated that its preliminary investigation, launched in August 2024, found that EU dairy products benefited from subsidies that caused “substantial damage” to China’s domestic dairy industry. The new tariffs are scheduled to take effect on December 23, 2025.
Key Impacts and Targeted Products
The duties range from 21.9% to 42.7%, with the specific rate depending on the level of cooperation provided by the companies during the investigation.
Cooperative Companies: Most participating firms, including major exporters like Arla Foods, will face a rate of approximately 28.6%.
Non-Cooperative Companies: Firms that did not participate in the probe will be hit with the maximum 42.7% tariff.
Affected Goods: The measures target a wide basket of goods, including:
Fresh and processed cheeses (including iconic brands like Roquefort and Camembert).
Blue cheese and curd.
Milk and cream with a fat content exceeding 10%.
A Widening Trade War
Analysts widely view the move as a direct response to the European Union’s decision earlier this year to impose tariffs of up to 45% on Chinese-made electric vehicles (EVs). Beijing has already retaliated by targeting other high-profile European exports, including brandy and pork.
The timing is particularly sensitive for European farmers. In 2024, China imported roughly $589 million worth of the dairy products covered by this investigation. While the EU remains China’s second-largest supplier of dairy, experts warn that these prohibitive costs could permanently shift supply chains toward competitors like New Zealand.
Reactions from Brussels
The European Commission has slammed the measures as “unjustified and unwarranted,” claiming the investigation was based on questionable allegations and insufficient evidence.
“The Commission is taking all necessary steps to defend European farmers and exporters against what we see as an arbitrary use of trade defense measures,” said a spokesperson for the EU. Brussels has already signaled its intent to challenge the move at the World Trade Organization (WTO).
