China’s Dairy Import Value Remains Stable at $589 Million Despite Trade Tensions

Beijing has announced provisional anti-subsidy tariffs of 21.9% to 42.7% on European Union dairy products starting Tuesday. Most affected companies will face duties near 30%. The measures follow an investigation widely seen as retaliation for EU tariffs on Chinese electric vehicles.
Brussels has rejected the decision in strong terms, calling it unjustified and based on insufficient evidence. The European Commission spokesperson emphasized that the investigation relies on questionable allegations. European officials are reviewing the tariffs and preparing formal objections.
The trade dispute originated in 2023 when the European Commission initiated an investigation into Chinese electric vehicle subsidies. Beijing has systematically responded with tariffs on European spirits, pork, and now dairy products. Despite maintaining pressure, China has occasionally demonstrated flexibility by reducing final tariffs in some sectors.
The new tariff framework creates differentiated rates for about 60 companies. Arla Foods will pay 28.6% to 29.7% on brands like Lurpak and Castello. Sterilgarda Alimenti from Italy received the most favorable treatment at 21.9%, while FrieslandCampina’s operations face the maximum 42.7%. Non-participating companies automatically receive the highest tariff.
China imported $589 million of dairy products covered by the current investigation last year, similar to 2023 values. The decision is likely to be welcomed by Chinese producers who are grappling with a glut of milk and falling prices as declining birthrates and more cost-conscious consumers weigh on demand. Authorities urged producers last year to rein in output.