Chinese authorities have implemented provisional tariffs ranging from 21.9% to 42.7% on select European dairy imports effective Tuesday. Popular brands like Lurpak butter, owned by Arla Foods, will face mid-tier duties between 28.6% and 29.7%.
Brussels has condemned the decision as unjustified and lacking proper foundation. The European Commission’s assessment indicates the investigation is based on questionable allegations without adequate evidence. Officials are conducting a detailed review and preparing formal objections.
Trade tensions originated in 2023 when the European Commission launched an investigation into Chinese electric vehicle subsidies. Beijing has systematically responded with tariffs on European spirits, pork, and dairy products. Despite this aggressive approach, China has occasionally demonstrated flexibility in final rulings.
About 60 companies, including Arla Foods, the owner of brands such as Lurpak and Castello, will pay tariffs between 28.6% and 29.7%. Italy’s Sterilgarda Alimenti will pay the lowest rate of 21.9%, while FrieslandCampina Belgium and FrieslandCampina Nederland will pay the highest rate of 42.7%. Companies that did not participate in the investigation will pay the highest rate.
Chinese dairy producers stand to benefit as they struggle with surplus production and declining profitability. Reduced birthrates and increasingly price-conscious consumers have dampened demand. China imported approximately $589 million in affected dairy products last year. The government has urged domestic producers to curtail production and reduce livestock numbers.