China has launched punitive tariffs on a range of European Union dairy products, citing unfair pricing practices, with duties reaching as high as 35% on certain goods. The move affects key exporters including Germany, France, and the Netherlands.
- China imposes definitive anti-dumping duties from 18.6% to 35.1% on EU dairy products
- Germany faces the highest tariff rate at 35.1% on certain processed cheese
- French exporters affected with rates between 18.6% and 29.7%
- Dutch and Danish suppliers hit with tariffs from 21.2% to 31.3%
- EU dairy exports to China could decline by up to 30% in the first year
- Estimated annual revenue loss for French and German producers exceeds $450 million
China's Ministry of Commerce has imposed definitive anti-dumping duties on several EU-origin dairy products after a 15-month trade investigation. The tariffs, ranging from 18.6% to 35.1%, target powdered milk, cheese, and butter, with the highest rate levied on certain processed cheese from Germany. The decision follows allegations that EU producers were selling goods in China below fair market value, undermining domestic producers. Specifically, German exporters face duties of up to 35.1%, while French dairy firms are subject to rates between 18.6% and 29.7%. Dutch and Danish suppliers are hit with tariffs between 21.2% and 31.3%, depending on the product category. The measures, effective January 1, 2026, are expected to significantly disrupt supply chains and reduce EU exports to China, which accounted for approximately 24% of China’s total dairy imports in 2024. The duties are projected to diminish EU dairy exports to China by an estimated 30% in the first year, with French and German producers potentially losing over $450 million in annual revenue. Smaller cooperative exporters in Spain and Italy may face disproportionate impacts due to lower economies of scale and reduced access to alternative markets. Chinese authorities argue the tariffs are necessary to protect domestic dairy farmers and ensure fair competition. Meanwhile, EU trade officials have expressed concern, warning that the decision could escalate trade tensions and prompt retaliatory measures in other sectors, including electronics and machinery.