China Eases Dairy Tariffs on EU Imports, Industry Seeks Further Dialogue

In a move signaling a potential thaw in a recent trade dispute, China has announced reduced import duties on European Union dairy products. The new rates, which took effect following a notification to European bodies on January 30, mark a significant decrease from the provisional anti-dumping tariffs imposed in December 2024.

The initial duties, which ranged from 21.9% to 42.7%, were the result of an investigation launched by China's Ministry of Commerce last August. Beijing cited concerns that subsidized EU dairy imports were depressing domestic market prices. The latest decision lowers the maximum tariff to 11.7%, with some major EU producers, including Denmark's Arla Foods and France's Lactalis, facing a rate of 9.5%.

"While the reduction is a step in the right direction, it does not erase the fundamental issue," said a statement from the European Dairy Association (EDA). The group maintains that EU exports comply fully with World Trade Organization (WTO) rules and that the Common Agricultural Policy (CAP) has no distortive impact on the Chinese cheese and cream markets. The EDA is scheduled to meet with the European Commission this week to formulate a response focused on defending market access and avoiding further escalation.

Trade analysts view this adjustment alongside other recent actions—such as lowered tariffs on UK Scotch whisky and slightly reduced duties on EU pork—as part of a calibrated strategy by Beijing. "China is navigating a complex economic landscape," said Dr. Evelyn Reed, a trade policy analyst at the Global Institute for Agribusiness. "These modulated tariff decisions appear to be tactical tools aimed at addressing specific domestic industry concerns while managing broader diplomatic and trade relationships, particularly with Europe."

However, the relief is tempered by ongoing frustration within the European industry. Belgium-based trade body Eucolait expressed disappointment, noting that even the reduced tariffs will "continue undermining the EU’s competitiveness" in the world's largest dairy import market. Cream and cheese exports to China represent a high-value segment for European producers.

Industry Voices React:

Michael Thorne, Dairy Exporter in Normandy: "This is a pragmatic move that helps our bottom line immediately. The previous rates were unsustainable. We hope this opens the door to the complete removal of these duties, as our operations have always been above board."

Sarah Chen, Food Security Analyst, Hong Kong: "The tariff reduction provides short-term stability for importers and European suppliers. Long-term, it underscores the need for clearer, rules-based frameworks to prevent such disputes from arising from perceived market imbalances."

Giovanni Rossi, Head of a Italian Dairy Cooperative: (Emotionally) "It's a slap in the face disguised as a concession! We are punished for being efficient and competitive. These 'investigations' feel like pretexts for protectionism. The EU Commission must push back harder; we cannot accept any tariff based on flawed premises."

Klara Jensen, Supply Chain Director, Copenhagen: "The lowered tariffs ease immediate logistical and costing pressures. However, the uncertainty of the past few months has forced many to reassess their reliance on the Chinese market. Diversification remains a key topic in boardrooms across Europe."

The European Commission has not yet publicly commented on the new rates or outlined potential next steps. The development leaves the door open for further dialogue, with European industry bodies urging a "constructive and sustainable solution" to a dispute they believe lacks justification.