Full Breakdown
China Reduces Tariffs on EU Dairy Imports Following Anti-Dumping Investigation
2/12/2026, 10:09:23 PM
Overview of the Tariff Reduction
On February 12, 2026, China announced a significant reduction in tariffs on dairy imports from the European Union (EU), following an 18-month anti-dumping investigation. The new tariffs, which will range from 7.4% to 11.7%, will take effect on February 13 and remain in place for five years. This decision marks a substantial decrease from the previously proposed tariffs of 21.9% to 42.7%, which were deemed excessively punitive and could have severely impacted EU dairy exports valued at over $500 million.
Background of the Investigation
The investigation into EU dairy products commenced on August 21, 2024, in response to the EU's imposition of tariffs on Chinese electric vehicles. The Chinese Ministry of Commerce (MOFCOM) conducted the inquiry to determine whether EU exporters were selling dairy products at unfairly low prices, a practice known as dumping. The investigation specifically targeted unsweetened milk, cream, and various cheeses, affecting major dairy-exporting countries such as France, Italy, Denmark, and the Netherlands.
Implications for Trade Relations
The reduction in tariffs is seen as a potential step towards stabilizing trade relations between China and the EU, which have been strained due to various trade disputes. The European Commission has criticized the initial tariffs as "unwarranted and unjustified" and is considering actions, including bringing the matter before the World Trade Organization (WTO). Analysts suggest that while the new tariffs still present challenges for EU producers, they provide a clearer framework for future trade.
Impact on Domestic and International Markets
The lowered tariffs are expected to benefit Chinese dairy producers, who have been facing overcapacity and declining prices. Dairy analyst Lian Yabing noted that the reduced tax rates would help avoid a complete exit of EU products, which could lead to raw material shortages. However, the tariffs may also favor New Zealand, China's largest dairy supplier, which benefits from a duty-free trade agreement with China. In December 2025, New Zealand's butter exports to China increased by over 35%, while EU exports remained stagnant.
Criticism and Opposition
Critics of the tariff reduction argue that it still imposes significant costs on EU exporters, making it difficult for them to compete with suppliers from countries with favorable trade agreements with China. Alexander Anton, Secretary General of the European Dairy Association, stated that the new duties would still hinder EU producers' ability to compete effectively in the Chinese market.
Official Statements
MOFCOM emphasized that the ruling was made in accordance with Chinese laws and WTO regulations, aiming to protect domestic industries while ensuring a fair market environment. A spokesperson from MOFCOM stated, "The investigation concluded that subsidized imports from the EU caused material injury to the domestic industry in China."
Verbatim Quotes
- “It’s a lesser evil that should let us keep a foothold in the Chinese market,” — Francois-Xavier Huard, CEO of French dairy industry association FNIL
- “Even with the tariff reduction, the EU will still have a hard time catching up to New Zealand,” — Lian Yabing, Dairy Analyst
- “Unfair trade practices from the EU have affected the Chinese dairy sector,” — Li Yong, Executive Council Member, China Society for WTO Studies
Conclusion
China's decision to lower tariffs on EU dairy imports reflects a complex interplay of trade relations and domestic market considerations. While the reduced rates provide some relief for EU exporters, the ongoing challenges highlight the broader implications of trade disputes and the need for continued dialogue between China and the EU.
