Similar Import Values Across Years Demonstrate Stable Pre-Tariff Trade Relationship

China has concluded the first phase of an anti-subsidy investigation by imposing provisional tariffs between 21.9% and 42.7% on European dairy imports. China imported $589 million of dairy products covered by the investigation last year, similar to 2023 values, showing stable trade prior to measures.
Brussels has strongly objected to the decision, characterizing it as unwarranted and lacking legitimate justification. The European Commission maintains that China’s investigation is based on questionable allegations without sufficient supporting evidence. Officials are reviewing the tariffs and preparing a comprehensive response.
The dispute originated in 2023 when the European Commission launched an investigation into Chinese electric vehicle subsidies. Beijing has systematically retaliated with tariffs on European brandy, pork, and now dairy products. The stable import values suggest the trade relationship was functioning normally before political tensions intervened.
The tariff structure affects around 60 companies with differentiated rates. Arla Foods will pay between 28.6% and 29.7%. Sterilgarda Alimenti received the most favorable treatment at 21.9%, while FrieslandCampina’s operations face the steepest penalties at 42.7%. Non-participating companies automatically receive maximum tariffs.
The decision is likely to be welcomed by Chinese producers grappling with excess supply and falling prices. Falling birthrates and more cost-conscious consumers have dampened demand. The stable import levels suggest market demand existed before tariffs, making the timing appear politically motivated.