Beijing has announced provisional anti-subsidy tariffs of 21.9% to 42.7% on European Union dairy products starting Tuesday. The measures proceed despite China’s ministry of commerce announcing resumed negotiations over EU electric vehicle tariffs this month.
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 and preparing formal comments.
China’s ministry of commerce said negotiations over the bloc’s EV tariffs resumed this month. However, the talks were scheduled to end last week and there has been no announcement since. A senior European diplomat in Beijing said last week that major issues remained between the two sides. The dairy tariff implementation suggests negotiations have not yielded progress.
Approximately 60 companies will face the new tariffs at varying rates. Arla Foods will pay between 28.6% and 29.7%. Italy’s Sterilgarda Alimenti secured the most favorable rate at 21.9%, while FrieslandCampina’s Belgian and Dutch operations must pay 42.7%. Non-cooperative companies automatically receive the highest tariff.
Chinese dairy producers are expected to benefit from these protective measures as they deal with excess supply and falling prices. Declining birthrates and budget-conscious consumers have reduced demand. Last year, China imported $589 million in affected dairy products. Authorities previously urged domestic producers to limit output.
