China will impose reduced anti-dumping tariffs on European Union dairy imports starting today, setting rates between 7.4% and 11.7% for the next five years—a significant reduction from the initially proposed range of 21.9% to 42.7%. The move signals a thawing in trade relations between Beijing and Brussels despite ongoing tensions over electric vehicles and other sectors.
While the tariffs represent China’s response to EU duties imposed in 2024 on Chinese electric vehicles, the substantial reduction in rates suggests Beijing is seeking to de-escalate trade friction with the European bloc. “China is willing to maintain dialogue with the European side to create an open and stable market environment for Chinese and European industries,” confirmed He Yadong, spokesperson for China’s Ministry of Commerce, in a statement yesterday.
The conciliatory tone appears to be reciprocal. This week, Brussels approved relief for Volkswagen from import duties on one of its SUV models manufactured in China—the first such authorization granted by the EU since the electric vehicle tariffs were imposed in 2024. China’s Commerce Ministry yesterday further encouraged Chinese electric vehicle manufacturers to negotiate independently with Brussels, stating: “It is hoped that more Chinese companies will reach price commitment agreements with the European side.”
The Chinese anti-dumping investigation into dairy products had affected major EU exporters, including France, Italy, Denmark, and the Netherlands. Despite the reduction, the new tariffs will still make it challenging for EU producers to compete with dairy exporters from countries that have free trade agreements with China, such as New Zealand.
Dairy products are not the only sector where Beijing has wielded tariff threats against European imports over the past eighteen months. Last September, China’s Commerce Ministry announced tariffs ranging from 15.6% to 62.4% on EU pork imports, which were subsequently reduced to between 4.9% and 19.8% in December. In July, Beijing established tariffs of up to 34.9% on EU brandy producers, though this measure was effectively neutralized by the decision to exempt major cognac producers—the French cognac industry accounts for nearly all Chinese brandy imports from Europe.
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