The final ruling lowers duties to 7.4%–11.7%, easing trade tensions but still offering protection to domestic producers
China has reduced tariffs on European Union dairy imports in its final ruling following an 18-month anti-dumping investigation, lowering the duties significantly from earlier proposed levels while still maintaining protection for domestic producers.
According to China’s commerce authorities, tariffs on EU dairy products will now range between 7.4 per cent and 11.7 per cent for a five-year period starting February 13. The new rates are substantially lower than the 21.9 per cent to 42.7 per cent duties announced in a preliminary decision last December. The investigation covered EU dairy shipments worth more than $506 million, highlighting the scale of the dispute.
The move comes amid ongoing trade tensions between Beijing and Brussels after the European Union imposed tariffs on Chinese electric vehicles, prompting China to launch investigations into European products. Despite the reduction, analysts say the tariffs still benefit Chinese dairy producers by limiting foreign competition while avoiding a sharp escalation in trade frictions.
China imported about $589 million worth of dairy products covered by the probe in 2024, roughly in line with the previous year’s levels. The investigation, launched in August 2024, targeted products such as unsweetened milk, cream, and a range of cheeses, including well-known varieties exported from countries like France, Italy, Denmark, and the Netherlands.
Earlier this month, the EU said it had received China’s final calculations for anti-subsidy duties, with definitive rates expected later in February. The tariff reduction marks the second time in two months that China has lowered duties on EU goods originally targeted after the bloc’s EV tariffs, suggesting both sides may be seeking ways to manage tensions while continuing negotiations.
While the revised duties signal some easing, differences remain between Brussels and Beijing over trade terms, and further talks are expected as both sides attempt to balance domestic industry protection with broader economic ties.
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