China Imposes Tariffs on EU Dairy Products Amid Trade Tensions

China has announced provisional tariffs of up to 42.7% on certain dairy products imported from the European Union (EU), effective December 23, 2025. This decision follows an anti-subsidy investigation initiated in August 2024, which concluded that EU subsidies had caused substantial damage to China's domestic dairy industry. The tariffs, which range from 21.9% to 42.7%, will primarily affect products such as milk, cream, and various cheeses, including French Roquefort and Italian Gorgonzola. Most companies involved in the investigation will face tariffs around 30%, while those that did not cooperate will incur the highest rates.

Tariffs of 21.9% to 42.7% target EU dairy products as China cites damage to domestic producersBeijing Hits EU with Dairy Tariffs as Trade Conflict WidensCNBCChina imposes provisional duties on EU dairy products

The imposition of these tariffs is widely viewed as a retaliatory measure against the EU's earlier tariffs on Chinese electric vehicles, which reached as high as 45% in October 2024. The trade tensions between China and the EU escalated significantly after the European Commission launched an anti-subsidy investigation into Chinese-made electric vehicles, prompting Beijing to respond with tariffs on EU products, including brandy and pork, before now targeting dairy.

China imposes provisional duties on EU dairy productsExpress TribuneEuronewsTariff War Escalates: China Imposes Duties of Up to 42.7% on EU Dairy Products, Global Trade Tensions Intensify

The European Commission has criticized the tariffs as "unjustified and unwarranted," asserting that the investigation was based on "questionable allegations and insufficient evidence." Olof Gill, a spokesperson for the Commission, stated that they are reviewing the preliminary determination and will provide comments to the Chinese authorities. The EU has also lodged a complaint with the World Trade Organization (WTO) regarding the tariffs, emphasizing the need for fair trade practices.

Euronews

The tariffs are expected to benefit Chinese dairy producers, who are currently facing a surplus of milk and declining prices due to changing consumer demands and lower birth rates. Analysts suggest that the tariffs will provide a protective measure for domestic producers as they shift towards higher-margin products like cream and butter. Lian Yabing, a dairy analyst, noted that over 90% of China's dairy farmers are currently unprofitable, making the tariff decision a potential lifeline for major producers like Yili and Mengniu.

Reuters

Critics argue that the tariffs serve as a political tool in the broader EU-China trade dispute, with dairy products being used as leverage in negotiations. Conor Mulvihill, director of Dairy Industry Ireland, expressed frustration that the dairy sector is being treated as a "political pawn" in the ongoing conflict. The impact of these tariffs is particularly severe for French producers, who have established a significant market presence in China.

Beijing Hits EU with Dairy Tariffs as Trade Conflict Widens

While China claims that EU subsidies have harmed its dairy industry, the EU contends that the investigation lacks sufficient evidence. The final ruling on the tariffs is expected by February 21, 2026, which may lead to adjustments in the tariff rates based on further findings.

China hits EU dairy with 42.7% tariffs, broadening trade conflict

As the situation develops, both sides are likely to engage in further diplomatic discussions and legal consultations. The outcome of the WTO proceedings and any potential negotiations regarding electric vehicle tariffs could influence the final determination of the dairy tariffs. The ongoing trade conflict underscores the complexities of EU-China relations, particularly in the agricultural sector, which has become increasingly contentious amid broader geopolitical tensions.

Tariffs of 21.9% to 42.7% target EU dairy products as China cites damage to domestic producers