China Imposes Provisional Duties Up to 42.7% on EU Dairy Products Amid Trade Tensions

China Imposes Provisional Duties on EU Dairy

Beijing, China – China's Ministry of Commerce announced on Monday, December 22, 2025, that it will impose provisional duties of up to 42.7% on certain dairy products imported from the European Union. These new tariffs, which take effect on Tuesday, December 23, 2025, are the result of a preliminary finding from an anti-subsidy investigation launched in August 2024. The decision marks a significant escalation in the ongoing trade dispute between China and the EU.

Details of the Tariffs and Affected Products

The provisional duties will range from 21.9% to 42.7%, with the specific rate depending on the company's cooperation with the investigation. Products targeted include a variety of dairy items such as milk, fresh and processed cheese, blue cheese, curd, and cream with a fat content exceeding 10% by weight.

Specific companies will face different rates:

• Italy's Sterilgarda Alimenti SpA will pay the lowest rate of 21.9%.
• Arla Foods, owner of brands like Lurpak and Castello, will face tariffs between 28.6% and 29.7%.
• FrieslandCampina Belgium NV and FrieslandCampina Nederland BV will incur the highest rate of 42.7%.
• Companies that did not participate in the investigation will also be subject to the maximum 42.7% duty.

These tariffs are estimated to affect approximately $1.49 billion worth of EU dairy goods exported to China in 2024.

China's Rationale and Investigation

The Chinese Commerce Ministry stated that its preliminary findings indicate that EU dairy imports have benefited from subsidies, causing 'substantial damage' to China's domestic dairy industry. The anti-subsidy probe was initiated in August 2024 following a request from the Dairy Association of China and is expected to conclude in February.

EU's Response and Broader Trade Context

The European Commission has strongly criticized China's decision, with spokesperson Olof Gill stating that the investigation is based on 'questionable allegations and insufficient evidence,' rendering the measures 'unjustified and unwarranted.' The Commission is currently reviewing the determination and plans to submit comments to the Chinese authorities.

This move is widely perceived as a retaliatory measure following the EU's imposition of tariffs on Chinese-made electric vehicles (EVs). The dairy duties follow similar investigations launched by Beijing into EU brandy and pork imports, further intensifying trade frictions. China was the EU's second-biggest market for skimmed milk powder and the fourth-largest for butter and whole milk powder in 2023, highlighting the significant impact these tariffs could have on European dairy exporters.