China has imposed provisional tariffs of 21.9% to 42.7% on select European Union dairy imports following an anti-subsidy investigation. The duties, effective Tuesday, see FrieslandCampina’s Belgian and Dutch operations receiving the harshest treatment at the maximum 42.7% rate.
The European Commission has condemned the move as unjustified and based on inadequate evidence. Officials argue that the investigation relies on questionable allegations without sufficient proof. Brussels is reviewing the decision and preparing formal objections.
Trade friction began in 2023 when the European Commission initiated an investigation into Chinese electric vehicle subsidies. Beijing has responded with tariffs on European spirits, pork, and dairy products. The varying rates suggest companies’ investigation participation significantly influenced outcomes.
Approximately 60 companies face the new tariffs at varying rates based on cooperation. Italy’s Sterilgarda Alimenti faces the lowest rate at 21.9%, while Arla Foods will pay between 28.6% and 29.7%. FrieslandCampina Belgium NV and FrieslandCampina Nederland BV will pay the highest rate of 42.7%. Companies that refused to participate automatically receive maximum penalties.
Chinese dairy producers are likely to welcome these measures as they grapple with oversupply and declining prices. Declining birthrates and budget-conscious consumers have weakened demand. Last year, China imported $589 million in affected dairy products. Authorities have encouraged domestic producers to curtail production.