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The dairy industry will be hit by tariffs. China has raised rates on some dairy products

2025-12-22 14:28

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2025-12-22 14:28

China said on Monday it was imposing temporary tariffs of up to 42.7% as it completed the first phase of its subsidy investigation. on certain dairy products imported from the European Union.

The dairy industry will be hit by tariffs. China has raised rates on some dairy products
The dairy industry will be hit by tariffs. China has raised rates on some dairy products
photo 279photo Studio / / Shutterstock

The new customs duties will come into force on Tuesday and will range from 21.9%. to 42.7 percent, although most companies will pay about 30 percent.

As China's Ministry of Commerce explained, an investigation into subsidies has shown that dairy products imported from the EU are subsidized, causing losses for Chinese producers.

However, Reuters pointed out that the subsidy investigation is widely seen as retaliation for the EU's tariffs on Chinese electric cars, and as part of that retaliation, Chinese authorities have also previously imposed tariffs on brandy and pork. She also reminded that the newly announced rates are not final and may be reduced after the final decision is issued – just like in the case of pork. Last week, China significantly reduced its provisional rates after concluding an investigation into pork subsidies.

China's Commerce Ministry said negotiations on EU tariffs on Chinese electric vehicles had resumed this month, but the talks were scheduled to end last week and no new information has been announced since then.

In 2024, the value of dairy products imported from the EU subject to new customs duties amounted to USD 589 million and was similar to the previous year.

Referring to the new rates, a European Commission spokesman described them as “unjustified and unfounded”. “The Commission assesses that the investigation is based on questionable allegations and insufficient evidence and that the measures are therefore unjustified and unjustified,” spokesman Olof Gill said on Monday.

In the opinion of the Association of Polish Milk Processors, the introduction of additional duties on certain dairy products means in practice pushing selected EU dairy products, especially cheese, out of the Chinese market and the need to find other markets for this product range.

The president of ZPPM, Marcin Hydzik, noted that the availability of new markets for the sale of milk products is limited and the competition is huge. “Due to the recently imposed tariffs on EU products by the US, EU exporters, including Polish ones, may be forced to drastically reduce prices if they still want to sell their products on the world market,” he said. At the same time, Hydzik expressed hope that the decision is temporary and may be changed after the final decision is issued, which may take place in February 2026. As ZPPM reminded, China significantly reduced the temporary tariffs on pork in its final decision issued in mid-December 2025. (PAP)

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Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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