China Softens Stance on EU Dairy Imports: What’s Behind the Shift?
Recent reports indicate that China’s finalized tariffs on EU dairy products may be lower than initially feared. While preliminary assessments pointed to rates between 21.9% and 42.7%, sources now suggest the final ad valorem duties will range from 9.5% to 11.7%. This adjustment signals a potential easing of tensions in the ongoing trade dispute between China and the European Union.
The Escalating Trade Conflict: A Timeline
The imposition of these tariffs is a direct response to the EU’s anti-subsidies investigation into Chinese electric vehicles, launched in 2023. China retaliated with investigations into EU brandy, pork, and dairy products. Initial provisional tariffs on EU dairy, announced in December 2025, reached as high as 42.7% for certain products, impacting companies like FrieslandCampina and Arla Foods.
Which EU Dairy Products Are Affected?
The tariffs apply to specific types of fresh and processed cheese, as well as milk and cream with a certain fat content intended for direct consumption. German companies, including Deutsches Milchkontor, Molkerei Ammerland, Privatmolkerei Naarmann, and Arla Foods Deutschland, are among those directly affected. Other impacted firms originate from France, Belgium, the Netherlands, and Italy.
Impact on German Dairy Exporters
Despite the tariffs, the German Dairy Industry Association views the impact on the German milk sector as “manageable.” Cheese and cream represent a relatively small portion of Germany’s total dairy exports to China compared to other nations like Italy and France. Italian and Danish companies are expected to be more significantly affected by the measures.
Why the Shift to Lower Tariffs?
The reduction in tariff rates suggests a possible recalibration of China’s strategy. While the initial high tariffs were intended as a strong signal of displeasure, lowering them could indicate a desire to avoid a full-scale trade war. It may also reflect a more nuanced assessment of the impact on both Chinese consumers and its own dairy industry.
The Broader Implications for EU-China Trade
This situation highlights the increasing complexity of global trade relations. The use of retaliatory tariffs is becoming a common tactic in disputes, creating uncertainty for businesses and potentially harming consumers. The EU Commission has stated that the investigation underlying these tariffs is based on questionable claims and insufficient evidence, and is taking steps to defend EU farmers and exporters.
FAQ
- What are the fresh tariff rates on EU dairy products in China? The final tariffs range from 9.5% to 11.7%.
- Which countries are most affected by these tariffs? Italy and Denmark are expected to be most significantly impacted.
- Is this a response to EU tariffs on Chinese goods? Yes, these tariffs are a retaliatory measure against EU anti-subsidies investigations into Chinese electric vehicles.
- Will these tariffs affect consumers in Europe? Direct impacts on European consumers are not expected.
Did you know? Approximately 70% of EU cream exports are destined for China.
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