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China Imposes Provisional Duties of Up to 42.7% on EU Dairy Imports

Brussels labels the cash deposits unjustified under WTO rules, with formal comments due before China’s February deadline.

Overview

  • Duties took effect on December 23 as ad valorem cash deposits at Chinese customs, immediately increasing import costs.
  • Rates range from 21.9% to 42.7% on cheeses, milk and some creams, with firm-specific assignments such as 21.9% for Sterilgarda and 42.7% for FrieslandCampina affiliates, while many cooperating exporters face roughly 28.6–28.7%.
  • China’s probe, launched in August 2024 at the request of domestic dairy associations, issued a preliminary finding that EU subsidies caused substantial injury, with a final decision expected by February 21, 2026.
  • The European Commission contests the legal basis as unsupported and plans to submit formal comments while weighing dispute-settlement options.
  • The measures deepen EUChina trade tensions linked to EU tariffs on Chinese electric vehicles and China’s actions on brandy and pork, with major suppliers including France, Italy, the Netherlands and Spain facing significant disruption and possible export diversion to third markets.