Beijing has concluded the first phase of an anti-subsidy investigation by imposing provisional tariffs between 21.9% and 42.7% on European dairy imports. The measures, effective from Tuesday, come as negotiators struggle to resolve underlying trade tensions.
Brussels has strongly objected to the decision, calling it unjustified and based on insufficient evidence. The European Commission maintains that the investigation relies on questionable allegations without adequate proof. Officials are reviewing the tariffs and preparing a comprehensive response.
Trade tensions originated in 2023 when the European Commission launched an investigation into Chinese electric vehicle subsidies. China’s ministry of commerce said negotiations over the bloc’s EV tariffs 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 remained between the two sides.
The tariff structure affects around 60 companies with differentiated rates. Arla Foods will pay between 28.6% and 29.7%. Sterilgarda Alimenti received the most favorable treatment at 21.9%, while FrieslandCampina’s operations face the steepest penalties at 42.7%. Non-participating companies automatically receive maximum tariffs.
The protective measures arrive as Chinese dairy producers struggle with surplus production and declining profitability. Falling birthrates and budget-conscious consumers have reduced demand. Last year, China imported $589 million in affected dairy products. The government has urged domestic producers to scale back output.