China Imposes Tariffs on European Dairy Products Amid Trade Tensions

China has increased tariffs on European dairy products, effective today, December 23rd, responding to what it claims are unfair subsidies. The tariffs, ranging from 21.9% to 42.7%, impact imports of milk, cream, and cheeses, and are viewed as a countermeasure to EU duties on Chinese electric vehicles.

China's Dairy Tariff Details

The Chinese Ministry of Commerce announced the new tariffs, which will be collected as provisional deposits. This decision follows a preliminary investigation initiated in August 2024 into European dairy exports. The investigation aimed to verify alleged subsidies and unfair trade practices that China claims harm its domestic dairy industry.

The investigation was extended by six months in August 2025, citing the “complexity of the case,” with a final decision expected by February 21, 2026.

Companies Affected

Several European companies will be affected by these tariffs. Italian company Sterilgarda faces a tariff of 21.9%, while other cooperating companies will pay 28%. Companies that did not respond to the questionnaires will be subject to a 42.7% tariff. French group Fromarsac will incur tariffs of 30%, and some businesses of Dutch producer FrieslandCampina could see tariffs as high as 43%.

Here's a breakdown of the tariff rates for specific companies:

EU's Response

The EU Commission has contested China’s investigation, deeming it based on “questionable accusations and insufficient evidence.” A spokesperson stated, “We are evaluating the preliminary decision and will provide our observations to the Chinese authorities,” reiterating that the EU will adopt all necessary measures to protect farmers, exporters, and the Common Agricultural Policy.

“We are evaluating the preliminary decision and will provide our observations to the Chinese authorities,” kata juru bicara Komisi UE.

Despite the tensions, the Commission reports progress in negotiations on electric vehicle prices and confirms its commitment to strengthening economic relations with China, provided that issues such as overcapacity, misuse of trade instruments, and trade deficits are addressed.

Parallel to the dairy dispute, China has recently imposed anti-dumping duties ranging from 5% to 20% on pork imports from the EU, easing preliminary measures adopted in September.

Italian Cheese Exports to China

Italian cheese exports to China have grown in the last five years, reaching €71 million in 2024, a 207% increase compared to 2020. Cheese is the second most exported Italian agri-food product to China after wine, while the total export of Made in Italy food to China has exceeded €600 million.

Italian Agri-Food Exports to China

The growth of Italian cheese exports to China is significant, but the new tariffs pose a threat to this expansion.

Impact on the Chinese Market

While cheese consumption is not traditionally part of the Chinese diet, local production has grown in the last twenty years, partly due to the World Health Organization promoting its high protein content. Despite this, most imported cheeses – from French Roquefort to Italian mozzarella, burrata, mascarpone, Parmesan, and Grana – still come from Italy, confirming the importance of high-quality European products in the Chinese market.

Global Cheese Export Trends

Even with a growing and quality-conscious Chinese market, the new tariffs risk slowing the sector’s expansion, while European cheese exports continue to be driven by the United States, the United Kingdom, and Japan.

The following table shows the trend of Italian cheese exports to China over the years:

Key Export Markets for European Cheese

While China represents a growth market, the primary destinations for European cheese exports remain in other parts of the world.

China's Broader Trade Actions

The dairy tariffs are part of a broader series of trade actions between China and the EU, indicating escalating tensions. These actions are perceived by many as retaliatory measures following the EU's own trade policies.

Recent Trade Actions Between China and the EU