
Beijing finalizes five-year anti-subsidy duties of up to 11.7% on EU milk, cheese and cream after 18-month probe, reshaping global dairy trade.
China’s Ministry of Commerce has announced the final antidumping/anti-subsidy duties on certain dairy products imported from the European Union (EU), setting tariff rates between 7.4% and 11.7%. The measure comes after an 18-month investigation initiated in August 2024 that found EU dairy exports — including milk, cream and cheese — benefited from subsidies that China officials say caused injury to its domestic producers.
These new tariffs will take effect from February 13, 2026, and remain in place for five years, providing a defined policy horizon for exporters and traders. The final duties are significantly lower than the 21.9%–42.7% provisional tariffs Beijing first announced at the end of 2025, reflecting a moderation of punitive measures amid broader diplomatic engagement and trade negotiations.
The tariffs cover a broad range of dairy categories including fresh and processed cheeses, certain high-fat milk and cream products, and other items within the EU export basket. While targeted, this list affects major dairy exporting nations such as France, Italy, Denmark and the Netherlands, all of which rely on China as a strategic export market.
For the EU dairy sector, this decision injects uncertainty into global trade flows, as producers recalibrate their China strategies amid tariff headwinds. The initial high provisional duties had already dampened export volumes, and while the final rates are lower, they still raise entry costs and could influence competitive positioning — notably benefiting producers from countries like New Zealand, whose exports enter China duty-free under existing trade frameworks.
From Beijing’s perspective, the tariffs aim to protect domestic dairy producers facing overcapacity and price pressures. China remains a significant dairy importer but seeks to balance import supply with industrial support for local farms. The tariff decision also reflects broader trade dynamics between China and the EU, including reciprocal actions tied to unrelated sectors such as electric vehicles, pork and spirits.
Source: Reuters via Yahoo Finance — https://uk.finance.yahoo.com/news/china-impose-tariffs-11-7-075905133.html
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