China Softens Trade Stance on EU Dairy, But Challenges Remain
In a significant shift, China announced on Thursday, February 12, 2026, that it will reduce tariffs on certain dairy products imported from the European Union (EU). The move comes after the imposition of provisional tariffs in December, signaling a potential easing of trade tensions. The lowered tariffs, ranging from 7.4% to 11.7%, will take effect on Friday.
From High Tariffs to Measured Relief
Previously, in December, China had implemented temporary tariffs on EU dairy imports, varying between 21.9% and 42.7%. The reduction to between 7.4% and 11.7% represents a substantial decrease, though tariffs will remain in place for the next five years. The products affected include fresh and processed cheese, cottage cheese, blue cheese, milk, and cream.
The Root of the Dispute: EU Subsidies
This tariff adjustment follows an investigation launched by China in August 2024, prompted by concerns raised by the China Dairy Industry Association. The investigation focused on potential links between EU subsidies and damage to the Chinese dairy industry. China’s Ministry of Commerce stated that the investigation’s findings indicated a connection between EU subsidies and harm to domestic producers.
Broader Trade Tensions: A Pattern of Retaliation?
This situation isn’t isolated. China has been increasingly assertive in its trade practices, often responding to actions taken by other nations. For example, in December 2025, China imposed anti-dumping duties on pork imports from the EU, ranging from 4.9% to 19.8%. These followed even higher temporary tariffs imposed earlier in September.
Similarly, China initiated investigations into EU pork imports in June 2024, shortly after the EU imposed tariffs on Chinese-made electric vehicles. Further, anti-dumping duties were also levied on European brandy, and cognac.
Impact on Latvian Dairy Farmers
The changes in tariffs will also impact Latvia’s dairy farming sector, as highlighted in reports from LSM.lv.
What Does This Imply for the Future?
The reduction in tariffs suggests a willingness from China to de-escalate trade disputes, but the five-year duration and the underlying investigation into EU subsidies indicate that challenges remain. The situation highlights the complex interplay between trade policies, domestic industry protection, and geopolitical considerations.
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: Why did China initially impose tariffs on EU dairy products?
A: China launched an investigation into EU subsidies and their potential harm to the Chinese dairy industry, leading to the imposition of temporary tariffs.
Q: Is this tariff change part of a larger trade pattern?
A: Yes, this is part of a broader pattern of trade tensions and retaliatory measures between China and the EU, involving products like pork, electric vehicles, brandy, and cognac.
Did you know? China’s investigation into EU dairy subsidies is scheduled to conclude in February.
Pro Tip: Businesses involved in EU-China dairy trade should closely monitor developments in trade policy and adjust their strategies accordingly.
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