Newsletters
China has imposed provisional tariffs of up to 42.7% on a range of dairy products imported from the European Union, following preliminary findings from an anti-subsidy investigation launched in August 2024.
The Chinese Commerce Ministry said on Monday that the new rates, which take effect on Dec. 23, stem from an assessment that EU subsidies caused what it described as "substantial damage" to China’s domestic dairy industry. The tariffs are set to apply to $1.49 billion worth of EU dairy goods exported to China in 2024, according to United Nations COMTRADE data.
The provisional duties range between 21.9% and 42.7% and apply to products such as fresh and processed cheese, curd, blue cheese, and certain types of milk and cream. Companies that cooperated with the investigation will face a tariff of 28.6%, while firms that did not cooperate will be subject to the highest rate of 42.7%, the ministry said.
The tariffs are based on the "ad valorem subsidy rates" calculated by the Customs Tariff Commission, meaning the duties are determined as a percentage of the value of the subsidized products rather than a fixed charge.
The move comes one week after Beijing sharply reduced its duties on EU pork imports, setting permanent anti-dumping levies of 4.9% to 19.8% for five years, replacing temporary rates that previously reached as high as 62.4%. Earlier in September, China had already imposed temporary anti-dumping measures on EU pork in the form of cash deposits.
Following the announcement from the Chinese Commerce Ministry, European Commission spokesperson Olof Gill told Reuters that the new dairy tariffs were "unjustified and unwarranted," arguing that the investigation was built on "questionable allegations and insufficient evidence."
He said the commission’s assessment was that the measures did not meet the conditions required for imposing such duties.
Previously, the European Union had challenged China’s tariffs on EU brandy at the World Trade Organization in November, arguing that Beijing’s measures do not comply with WTO rules. The broader dispute intensified after Brussels introduced tariffs of up to 45% on electric vehicles imported from China in October 2024, prompting Beijing to respond across multiple sectors.
Set as preferred source
1 min read
1 min read
