China lowers EU dairy tariffs in final ruling after 18-month probe
Sign up now: Get insights on Asia's fast-moving developments
Even at the lowered rates, the tariffs are still good news for Chinese producers facing overcapacity and falling prices.
PHOTO: REUTERS
BEIJING – China on Feb 12 reduced tariffs on European Union dairy imports worth over US$500 million (S$630 million), in the final ruling of an 18-month anti-dumping investigation started in response to the bloc’s duties on Chinese electric vehicles.
China will impose tariffs ranging from 7.4 per cent to 11.7 per cent on dairy imports from the EU for a five-year period, starting on Feb 13. This is significantly lower than the 21.9 per cent to 42.7 per cent initially imposed
On Feb 3, the EU said it had received China’s final calculations for planned anti-subsidy duties on EU dairy products, with definitive tariffs due by Feb 21.
Industry groups said the proposed final rates ranged from 7.4 per cent to 11.7 per cent, in line with Feb 12’s official Chinese announcement. This is the second time in two months that China has reduced tariffs for the bloc on products targeted after the EU introduced electric vehicle tariffs.
Brussels issued detailed rules in January for how the tariffs could be replaced with the minimum price commitments that Beijing has advocated for, although differences still remain between their proposals.
China’s dairy anti-dumping investigation began in August 2024 and has impacted major dairy exporters such as France, Italy, Denmark, and the Netherlands. The dairy probe targeted unsweetened milk and cream, as well as fresh and processed cheeses, including famed French varieties such as Roquefort and Camembert.
Good news for domestic producers
China, the world’s third-largest dairy producer, imported US$506.3 million of dairy products covered by the investigation in 2025, down 14 per cent from US$589 million in 2024.
Even at the lowered rates, the tariffs are still good news for Chinese producers facing overcapacity and falling prices. In January, China’s agriculture ministry vowed to accelerate measures to help the beef and dairy sectors stabilise production capacity.
“Even if the EU dairy import tax drops to 11.7 per cent, it’s still good news for Chinese dairy companies! The reduced tax rate avoids a complete exit of EU products leading to raw material shortages, while still maintaining a reasonable level of protection,” said dairy analyst Lian Yabing at Beijing Orient Agribusiness Consultants.
China’s milk surplus and changing consumer dairy demands have led the country’s suppliers to focus on higher-margin products over the past year, analysts said, making it less reliant on imports.
The tariffs on EU dairy imports could also favour New Zealand, China’s top supplier, whose products benefit from a more stable supply chain and predictable trade environment, said head of Dairy Asia at StoneX Yifan Li.
China imported 15,585 tonnes of New Zealand butter in December 2025, up 35.23 per cent year on year, while the EU’s butter exports saw no growth in China as of November 2025, Mr Li said.
“Even with the tariff reduction, the EU will still have a hard time catching up to New Zealand,” dairy analyst Lian said.
“Because of the China-New Zealand trade agreement, tariffs on imported New Zealand dairy products have already been reduced to 0 per cent across the board.” REUTERS
