China Imposes Duties on EU Dairy Amid Trade Tensions

China will impose duties ranging from 21.9% to 42.7% on EU dairy imports starting December 23, following an anti-subsidy probe. The decision is seen as a response to the EU's investigation into Chinese-made electric vehicles. Trade tensions between China and the EU continue to escalate.

China has announced that from December 23, it will enforce provisional duties of 21.9% to 42.7% on certain dairy products imported from the European Union. This move follows an anti-subsidy investigation that began over a year ago, with Beijing citing substantial damage to its domestic industry.

The Chinese commerce ministry highlighted that European dairy imports are subsidized, creating a significant strain on local businesses. Rising trade tensions between China and the EU have been a concern since 2023 when the European Commission initiated an anti-subsidy probe into Chinese electric vehicles. In apparent retaliation, China launched its investigations into EU imports of brandy, pork, and dairy products.

Among the affected companies, Italy's Sterilgarda Alimenti SpA faces the lowest duty rate of 21.9%, while FrieslandCampina Belgium N.V. and FrieslandCampina Nederland B.V. are subject to the highest at 42.7%. The EU supplies were China's second-largest dairy source, following New Zealand.