China Softens Trade Stance on EU Dairy, But Challenges Remain
China has announced a reduction in tariffs on certain dairy products imported from the European Union (EU), a move that could offer some relief to European dairy farmers. The lowered tariffs, ranging from 7.4% to 11.7%, take effect on Friday and represent a significant shift from the temporary duties imposed in December, which ranged from 21.9% to 42.7%. This adjustment comes after a period of heightened trade tensions and investigations into EU subsidies.
The Tariff Timeline: From Escalation to Moderation
The initial imposition of higher tariffs in December 2025 signaled a hardening of China’s trade policy towards the EU dairy sector. This followed an investigation launched in August 2024, initiated at the request of the China Dairy Industry Association, alleging that EU subsidies were causing harm to the Chinese dairy industry. The investigation is expected to conclude in February 2026.
Still, the recent reduction indicates a potential easing of these tensions. The lowered tariffs will remain in place for five years and apply to a range of dairy products, including fresh and processed cheese, cottage cheese, blue cheese, milk, and cream.
Broader Trade Disputes: Beyond Dairy
The dairy tariff adjustments are part of a larger pattern of trade disputes between China and the EU. In December 2025, China also implemented anti-dumping duties on pork imports from the EU, ranging from 4.9% to 19.8%. Previously, temporary duties on pork had been as high as 62.4%. These actions followed EU tariffs on Chinese-made electric vehicles.
Further complicating the situation, China has also imposed anti-dumping duties on European brandy and cognac, demonstrating a willingness to retaliate against perceived unfair trade practices.
Impact on Latvian Dairy Farmers
The changes in Chinese tariffs will also impact Latvia’s dairy industry, as Latvia is a member of the EU. While the reduction in tariffs is a positive development, the long-term effects remain to be seen.
What’s Driving China’s Shift?
The reduction in tariffs may be a strategic move by China to de-escalate trade tensions and signal a willingness to engage in dialogue. The investigation into EU subsidies suggests that China is seeking to address concerns about unfair competition and protect its domestic dairy industry. The findings of the investigation, expected in February, will likely play a crucial role in shaping future trade relations.
Did you know? China initiated an investigation into EU pork imports in June 2024, shortly after the EU imposed tariffs on Chinese electric vehicles.
FAQ
Q: What dairy products are affected by the tariff reduction?
A: The reduction applies to fresh and processed cheese, cottage cheese, blue cheese, milk, and cream.
Q: How long will the reduced tariffs be in effect?
A: The reduced tariffs will be in effect for five years.
Q: What prompted China to launch an investigation into EU dairy subsidies?
A: The investigation was launched in August 2024 at the request of the China Dairy Industry Association, which alleged that EU subsidies were harming the Chinese dairy industry.
Q: Are there other trade disputes between China and the EU?
A: Yes, disputes exist regarding pork, electric vehicles, brandy, and cognac.
Pro Tip: Stay informed about trade policy changes by regularly checking official government websites and industry news sources.
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