Beijing, February 14, 2026 — China has finalized anti-subsidy duties ranging from 7.4% to 11.7% on selected dairy imports from the European Union, concluding an 18-month investigation into alleged state support for EU exporters. The tariffs, announced by the Ministry of Commerce of the People’s Republic of China, take effect from February 13, 2026, and will remain in place for five years.
The probe, launched in August 2024, determined that certain EU dairy products — including milk, cream, and cheese — benefited from subsidies that Chinese authorities claim caused material injury to domestic producers. The final duty rates are notably lower than the provisional tariffs of 21.9% to 42.7% introduced at the end of 2025, signaling a partial easing amid ongoing diplomatic and trade discussions between Beijing and Brussels.
The measures apply to a wide range of dairy categories, including fresh and processed cheeses, high-fat milk, and cream products within the EU export portfolio. Major exporting nations such as France, Italy, Denmark, and the Netherlands — all of which consider China a key strategic market — are expected to feel the impact.
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For European dairy exporters, the decision adds fresh uncertainty to global trade flows. While the reduced final rates soften the blow compared to earlier provisional duties, they nonetheless increase market entry costs and could alter competitive dynamics. Industry analysts suggest the move may indirectly strengthen suppliers such as New Zealand, whose dairy exports enter China under preferential trade arrangements.
From Beijing’s standpoint, the tariffs are intended to safeguard domestic dairy producers grappling with overcapacity and sustained price pressures. China remains one of the world’s largest dairy importers, but policymakers are seeking to balance import reliance with long-term industrial support for local farming operations.
The development also reflects broader trade tensions between China and the European Union, including parallel disputes involving electric vehicles, pork, and spirits — underscoring how dairy has become part of a wider geopolitical trade landscape.
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