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China has imposed tariffs of up to 42.7 per cent on certain dairy imports from the EU, after a 16-month anti-subsidy investigation that ratcheted up trade tensions between Brussels and Beijing.
The commerce ministry said in a preliminary decision on Monday that it had found dairy imports from the EU were subsidised, and that China’s domestic industry “suffered material injury” as a result.
The tariffs, of between 21.9 and 42.7 per cent but which for most affected companies are just under 30 per cent, will take effect from December 23.
China’s investigation into dairy imports from the EU, a major producer from France to Ireland, was launched in August 2024, shortly after the 27-member bloc’s own investigation into subsidies led to new tariffs on Chinese electric vehicles.
Beijing also launched probes into pork and brandy.
Retaliatory disputes over EVs have since been overshadowed by US President Donald Trump’s so-called liberation day tariffs on China, which sharply escalated in April and ultimately led to a truce in October.
But the new dairy tariffs come amid persistent strains in a trading relationship that Europe has repeatedly claimed is imbalanced.
Beijing has repeatedly sought to negotiate a deal with Brussels to drop the EV tariffs in exchange for a pledge to sell at a minimum price that does not undercut domestic rivals. The European Commission this month said it was considering granting a so-called minimum price undertaking only to Volkswagen, the German carmaker with factories in China.
EU officials, speaking on condition of anonymity, said Beijing was insisting on a sector-wide deal rather than with individual Chinese companies, complicating talks.
The latest move piles pressure on a restive EU farming sector angry about proposed cuts to the bloc’s subsidy scheme, trade deals allowing more imports and environmental regulations.
Tractors rolled into Brussels during an EU summit last week. Protesters smashed up European parliament buildings, spread manure and pelted riot police with potatoes.
According to a Ministry of Commerce breakdown of the new tariffs across dozens of companies, almost all those affected will see tariffs of 28.6 per cent or 29.7 per cent.
The ministry’s statement referred to fresh, processed and blue cheese, as well as unconcentrated milk and cream. It made no mention of milk powder or infant formula which account for a large portion of exports.
The highest rate is reserved for FrieslandCampina, a Dutch dairy co-operative, as well as other unnamed companies. Asia, including China, accounted for more than a quarter of its €13bn sales in 2024. The figure also accounts for Indonesia, Thailand, the Philippines and Pakistan.
The EU has long maintained that its farm subsidies are compliant with international trade rules since they are not linked to production.
The European Commission and FrieslandCampina have yet to reply to a request for comment.
With contributions from Nian Liu in Shanghai
