Dairy, beef and soybean products are slapped with a 10% levy as Beijing hits back at US-imposed tariffs.
A total of 740 US farm products are now subject to additional import duties after China’s retaliatory measures took effect on March 10, 2025.
The duties apply to products that have shipped from the US after March 10 and arrived in China after April 12, 2025.
A 10% tariff will be applied to commodities such as sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products.
A 15% tariff will be imposed on items including chicken, wheat, corn, and cotton.
$2.6 billion . . .
. . . was lost in dairy farm revenues from 2019 to 2021 due to China’s retaliatory tariffs.
The new tariffs will be applied on top of the current applicable tariff rates.
A total of 26 dairy products will be subject to a 10% levy, with whey for feed – a crucial commodity for China’s feed sector – exempted from tariffs.
These are the US dairy exports to bear the brunt of the new 10% tariffs:
- Milk and cream, not concentrated, not sweetened, fat content not exceeding 1%
- Milk and cream, not concentrated, not sweetened, fat content 1%-6%
- Milk and cream, not concentrated, not sweetened, fat content 6%-10%
- Milk and cream, not concentrated, not sweetened, fat content exceeding 10%
- Solid milk and cream, fat content ≤1.5%
- Solid milk and cream, not sweetened, fat content >1.5%
- Solid milk and cream, sweetened, fat content >1.5%
- Concentrated but not sweetened liquid milk and cream
- Concentrated and sweetened liquid milk and cream
- Yogurt containing only sugar, fruits, or nuts
- Other yogurt
- Buttermilk
- Other products containing natural milk
- Butter
- Dairy spreads
- Other fats and oils derived from milk
- Fresh cheese, curd
- Grated or powdered cheese
- Other processed cheese
- Blue-veined cheese and other cheese containing veins produced by Penicillium roqueforti
- Other cheese
- Ice cream and other edible ice, whether or not containing cocoa
- Casein
- Casein derivatives; casein glues
- Lactalbumin, including two or more whey protein concentrates
- Cheese, nes
Other commodities subject to the new 10% levy include sorghum, soybeans, pork, beef, fish (including fish oils and fats), nuts, fruit and vegetables, and some legumes.
Products hit with a 15% tariff include chicken, wheat, corn and cotton.
US dairy exports increase in 2025
Data released by the US Dairy Export Council on March 7 revealed that US dairy export value increased 20% year over year to $714m – a record for January.
Almost all commodities saw gains, though nonfat dry milk (NFDM) and skim milk powder (SMP) struggled due to elevated prices, limiting the total dairy export volume increase to 0.4% year over year (in milk solids equivalent terms).
Cheese exports continued to grow in January, with volume gains for 13th straight month and shipments up 22%. Exports to Mexico, the largest importer of US cheese, inched up 1% but shipments to other destinations such as Japan (59%) and South Korea (34%) soared.
Strong performance in Central America and the Caribbean (+14%, +1,037 MT) and Oceania (+21%, +587 MT) further contributed to export strength, said USDEC.
Butterfat exports also improved in January, with total shipments growing 145% year over year. utter exports were 41% (+927 MT) larger than last January, recording strong gains across the globe but especially to Canada (+19%, +300 MT), Central America and the Caribbean (+103%, +211 MT), and the Middle East/North Africa (MENA) (+776%, +204 MT).
Anhydrous milk fat (AMF) – which must contain at least 99.8 % milk fat and be made from fresh cream or butter – enjoyed its highest shipments in volume terms, up 525% year over year, with Canada and Mexico purchasing most of it, likely in anticipation of tariff implementations.
Currently, US butter prices hold more than a 30% price advantage against alternative suppliers, after adjusting for fat content, USDEC says.
NFDM and SMP trade has continued to trend down, however, with January exports at -20% YoY, with weak volumes across Southeast Asia (-42%), MENA (-90%) and Japan (-72%).
This is largely due to high US prices and weaker production in 2024: in Q4, NFDM prices were 10% above those of the EU and New Zealand-produced commodity while production was down 14%, supporting prices.
In March 2025, US prices are trending 3% below the global market after production (up 11%) and stocks (up 41%) improved in January 2025 – but global demand for skim and nonfat milk powder is expected to remain sluggish this year according to USDEC, tempering expectations for significant growth in US exports.
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