China has launched retaliatory tariffs on a range of European Union dairy products, with rates reaching as high as 42.7%, effective December 23, 2025. The move follows allegations that EU exports are harming China’s domestic dairy sector.
- Tariffs on EU dairy products range from 21.9% to 42.7%
- Effective date: December 23, 2025
- Products affected include powdered milk, butter, and cheese
- Highest rate (42.7%) applies to powdered milk from select EU countries
- Measures follow China’s claim of damage to its domestic dairy industry
- Impact expected on EU exporters and Chinese import costs
China has implemented new anti-dumping tariffs on several dairy product categories sourced from the European Union, marking a significant escalation in cross-border trade tensions. The tariffs, which range from 21.9% to 42.7%, will apply to goods including powdered milk, butter, and cheese, and took effect on December 23, 2025. The measures were announced by China’s Ministry of Commerce, citing an ongoing investigation into alleged unfair pricing and market distortion caused by EU dairy imports. The specific tariff rates vary by product type and origin within the EU, reflecting differentiated findings in the trade probe. For instance, powdered milk from certain member states faces the highest rate of 42.7%, while butter imports are subject to a 21.9% levy. These figures represent a substantial increase over previous import duties and could significantly affect the competitiveness of EU exporters in the Chinese market. The decision comes amid broader economic friction between Beijing and Brussels, with both sides adjusting trade policies in response to perceived imbalances. The affected EU dairy producers, particularly from France, Germany, and the Netherlands, may experience reduced export volumes and margin pressure due to the new costs. In turn, Chinese consumers could face higher prices for imported dairy goods, although domestic supply is expected to absorb some of the demand shift. Market analysts note that the timing of the announcement—just days before the end of the year—suggests strategic intent, possibly to influence upcoming trade negotiations or signal resolve in protecting domestic industries. The impact extends beyond immediate trade flows, potentially affecting long-term supply chains and investment decisions in agri-food sectors across Europe and Asia.