China has imposed steep anti-dumping duties ranging from 21.9% to 42.7% on dairy imports from the European Union, significantly escalating trade tensions between the two economic powers. The provisional tariffs, effective December 23, target a wide range of products including cheese, milk and cream, following a 16-month investigation by China’s Ministry of Commerce.
According to Chinese authorities, the investigation found that EU dairy products were subsidised, causing “substantial damage” to China’s domestic dairy industry, with a clear causal link between subsidies and market harm. Importers will now be required to pay anti-subsidy duty deposits at customs.
Who Is Hit the Hardest
- FrieslandCampina (Netherlands): 42.7% tariff — the highest among EU exporters
- Arla Foods (Denmark): 28.6%–29.7% tariffs, impacting brands such as Lurpak
- Other EU dairy exporters face duties starting at 21.9%
The move comes amid intensifying EU–China trade friction, widely seen as retaliation for the European Union’s recent tariffs on Chinese battery electric vehicles (BEVs).
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Part of a Broader Retaliation Strategy
The dairy action follows a string of Chinese trade measures against European agricultural goods:
- EU pork: Five-year duties of 4.9%–19.8% imposed last week
- Brandy: Anti-dumping probe launched in January 2024
- Dairy: Investigation initiated in August 2024
China has also extended the dairy probe until February 2026, allowing exporters 10 days to submit written responses during the consultation phase.
EU Pushback
The European Commission strongly criticised the decision, calling the allegations “questionable” and the evidence insufficient. Brussels has warned the measures are unjustified, signalling the possibility of WTO dispute proceedings if final duties are confirmed. A definitive ruling is expected by February 21, 2026.
Industry Reactions
- FrieslandCampina said it has taken note of the preliminary decision and will engage constructively with Chinese authorities.
- Arla Foods has yet to issue an official response.
Global Dairy Trade Impact
China is the world’s largest dairy import market, and the tariffs place EU exporters at a major cost disadvantage, potentially reshaping global dairy trade flows. Analysts suggest the move could open opportunities for non-EU suppliers such as New Zealand, Australia and the United States to gain market share.
Bigger Picture
China’s actions highlight how agricultural commodities are increasingly being used as leverage in geopolitical and trade disputes. While Beijing may still soften final tariff levels—similar to what it did in the pork case—the message is clear: trade disputes are now spilling directly into the global dairy aisle.
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