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China hits EU dairy industry with tariffs of up to 42.7%

2025-12-22 17:06:00, Kosova & Bota CNA

China will impose temporary tariffs of up to 42.7% on some dairy products imported from the EU starting Tuesday, after concluding the first phase of an anti-subsidy investigation, which is widely seen as retaliation for the bloc's tariffs on electric vehicles.

The tariffs will range from 21.9% to 42.7%, although most companies will pay around 30%, and will target products such as milk and cheese, including protected origin brands such as Italian gorgonzola. The European Commission criticized the decision as unjustified.

"The commission's assessment is that the investigation is based on dubious allegations and insufficient evidence, and that the measures are therefore unjustified and unjustified ," spokesman Olof Gill said.

Monday's decision is provisional and could be reviewed when a final decision is made. China significantly reduced provisional tariffs on pork in its final decision last week.

Trade tensions with the EU erupted in 2023 when the European Commission, which oversees the bloc's trade policy, launched an investigation into subsidies for electric vehicles made in China.

Beijing has imposed tariffs on imports of brandy, pork and now milk from the EU, measures seen as retaliatory.

However, as it did with pork, Beijing has reduced or limited the impact of its tariffs several times, including partially sparing major cognac producers.

China's Commerce Ministry said negotiations on the bloc's tariffs on electric vehicles 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 remain between the two sides.

China imported $589 million (£438 million) of dairy products covered by the current investigation last year, similar to 2023 values.

China's Ministry of Commerce said in a statement that it had found evidence that EU dairy imports were subsidized and harmed Chinese producers. About 60 companies, including Arla Foods, owner of brands such as Lurpak and Castello, will pay tariffs of between 28.6% and 29.7%.

Italy's Sterilgarda Alimenti SpA will pay the lowest rate of 21.9%, while FrieslandCampina Belgium NV and FrieslandCampina Nederland BV will pay the highest rate of 42.7%.

Companies that did not participate in the investigation will pay the higher rate. The decision is likely to be welcomed by Chinese producers who are facing a milk glut and falling prices, as falling births and more cost-conscious consumers weigh on demand.

China, the world's third-largest milk producer, asked producers last year to curb production and reduce the number of older and less productive cows. /CNA