- China is imposing anti-subsidy duties on EU dairy products ranging from 21.9% to 42.7%.
- The tariffs cover milk, cream, and a wide range of cheeses.
- Beijing believes that EU subsidies have distorted competition and harmed local producers.
The customs duty mechanism and Beijing’s arguments
China’s trade authorities have announced the introduction of temporary anti-subsidy tariffs on dairy products imported from the European Union. The new regulations have been in force since 23 December and provide for tariffs ranging from 21.9% to 42.7%, with most European exporters being subject to a level of around 30%.
The tariffs range from basic products such as milk and cream to fresh and ripened cheeses, including products protected by geographical indications. The Chinese Ministry of Commerce points out that EU subsidies have led to lower prices for imported products and have caused significant harm to domestic dairy producers. The level of tariffs was differentiated according to the degree of cooperation from EU dairy companies during the investigation.
From Beijing’s perspective, the decision is protective and in line with World Trade Organisation rules. In practice, however, the tariffs significantly increase the cost of EU dairy on the Chinese market, reducing its competitiveness against suppliers from other regions of the world.
Implications for the EU and the wider geopolitical context
The European Commission has criticised China’s decision, considering it disproportionate and based on questionable economic rationale. Brussels insists that the EU’s agricultural support mechanisms are transparent and in line with international commitments, and that the tariffs themselves could set a dangerous precedent for global food trade.
For the European dairy sector, the consequences could be significant. China is one of the key markets for some producers, especially in the cheese and higher value-added segments. High tariffs could lead to a decrease in export volumes, price pressure in alternative markets and a deterioration in producers’ profitability.
The decision is part of the wider context of the growing trade conflict between the EU and China. Following previous disputes over electric cars, brandy and pork, the agri-food sector is becoming another area used in economic negotiations. As a result, regulatory uncertainty is growing and companies on both sides are forced to factor political risk into their trade strategies.
