China imposes provisional duties on EU dairy products

Starting Tuesday, December 23, 2025, China will impose provisional duties of up to 42.7% on certain dairy products imported from the European Union, following the conclusion of the first phase of an anti-subsidy investigation. The move is widely seen as retaliation for the EU’s tariffs on electric vehicles. Tariffs will range from 21.9% to 42.7%, though most companies will pay around 30%, and will target products such as milk, cheese, and protected-origin items like French Roquefort and Italian Gorgonzola.

The European Commission criticized the decision as “unjustified and unwarranted” and stated that it is reviewing the case and will submit comments to Chinese authorities. “Our assessment is that the investigation is based on questionable allegations and insufficient evidence, making the measures unjustified,” said spokesperson Olof Gill.

The provisional decision could be revised when a final ruling is issued. In previous cases, China has reduced provisional tariffs on products such as pork, limiting their impact on major producers. Trade tensions between China and the EU escalated in 2023 after the European Commission launched an anti-subsidy investigation into Chinese-made electric vehicles. In response, Beijing imposed tariffs on EU brandy, pork, and now dairy, while occasionally moderating their effects on key producers.

China’s Ministry of Commerce stated that it found evidence that EU dairy imports were subsidized and harmed Chinese producers. About 60 companies, including Arla Foods (owner of Lurpak and Castello), will pay tariffs between 28.6% and 29.7%. Italy’s Sterilgarda Alimenti SpA will face 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 also pay the top rate.

The move is likely to benefit Chinese producers, who are struggling with oversupply and falling prices amid declining birth rates and more cost-conscious consumers. As the world’s third-largest milk producer, China last year urged its producers to limit output and reduce the number of older, less productive cows.

Tags: Cheese, dairy products, China, EU, duties