China cuts tariffs on EU dairy imports
Lower duties ease tensions but hit competitiveness
13 February 2026
2 minute read
By: China on Thursday reduced tariffs on European Union dairy imports worth over $500 million, in the final ruling of an 18-month anti-dumping investigation started in response to the bloc's duties on Chinese electric vehicles, reported Reuters.
The new tariffs ranging from 7.4% to 11.7% on dairy imports from the EU will apply for a five-year period from February 13, replacing the 21.9% to 42.7% range imposed in a preliminary decision in December, as stated by China's Ministry of Commerce.
The announced rates are in line with calculations the EU received from Beijing last week.
The European Commission said the duties are "unwarranted and unjustified" and it will evaluate taking all appropriate action including taking the issue to the World Trade Organisation.
Sign of stabilising relations
Even so, this is the second time in two months that China has reduced tariffs on EU products imposed after the EU introduced its electric vehicle tariffs, a sign that relations between the world's No. 2 economy and the 27-member bloc may be stabilising after a prolonged period of tensions.
On Wednesday, Brussels agreed to exempt Volkswagen from hefty tariffs on its imports from China, the first such approval, and Chinese carmakers are expected to apply for similar deals.
The originally proposed dairy tariffs would have made European exports prohibitively expensive, and Francois-Xavier Huard, CEO of French dairy industry association FNIL welcomed the step.
"It's a lesser evil that should let us keep a foothold in the Chinese market," Huard told Reuters.
The new duties will still make it hard for EU producers to compete with those from countries with free-trade agreements with China, according to Alexander Anton, secretary general of the European Dairy Association.
China's dairy anti-dumping investigation began in August 2024, affecting major dairy exporters such as France, Italy, Denmark, and the Netherlands and brands including Lurpak maker Arla, Friesland Campina and France's Lactalis.
Beijing has imposed or threatened anti-dumping measures on imports of many products from pork to brandy from the EU since the bloc's duties on China-made electric vehicles came into force in 2024.
Arla and Lactalis, which will each incur 9.5% duties, declined to comment. Friesland Campina, which will face 11.7% tariffs, said it will continue to engage in "constructive dialogue" with China’s Ministry of Commerce.
Good news for domestic producers
China is the world's third-largest dairy producer, and even at the lowered rates, the tariffs offer relief to Chinese producers facing overcapacity and falling prices.
"Even if the EU dairy import tax drops to 11.7%, it's still good news for Chinese dairy companies!" said Lian Yabing, a dairy analyst at Beijing Orient Agribusiness Consultants.
"The reduced tax rate avoids a complete exit of EU products leading to raw material shortages, while still maintaining a reasonable level of protection."
China's milk surplus and changing consumer demands have led its dairy industry to focus on higher-margin products over the past year, analysts said, making it less reliant on imports.
The tariffs on EU dairy imports are seen favouring China's top supplier, New Zealand, which has a free-trade agreement with China.
"Even with the tariff reduction, the EU will still have a hard time catching up to New Zealand," Lian said.
