European Dairy Sector Prepares Response to Chinese Anti-Subsidy Findings

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 around 30%. The decision follows an investigation that found evidence EU dairy imports were subsidized and hurting Chinese producers.
The European Commission has rejected the tariffs as illegitimate and poorly substantiated. Spokesperson Olof Gill stated that the investigation is based on questionable allegations and insufficient evidence. Brussels is examining the decision closely and preparing formal comments for Chinese authorities.
Trade tensions originated in 2023 when the European Commission launched an investigation into Chinese electric vehicle subsidies. China has systematically responded with tariffs on European spirits, pork, and dairy. Despite this assertive stance, Beijing has occasionally demonstrated flexibility by reducing final tariffs below provisional levels.
Approximately 60 companies will face the new tariffs at varying rates based on cooperation. Arla Foods will pay 28.6% to 29.7%. Italy’s Sterilgarda Alimenti faces the lowest rate at 21.9%, while FrieslandCampina’s Belgian and Dutch facilities must pay 42.7%. Non-participating companies automatically receive maximum tariffs.
Chinese dairy producers stand to benefit as they grapple with oversupply and declining prices. Reduced birthrates and increasingly budget-conscious consumers have dampened demand. China imported approximately $589 million in affected dairy products last year. Authorities have encouraged domestic producers to curtail production and reduce livestock numbers.