European Protected Designation Dairy Products Lose Chinese Market Access

China has imposed provisional tariffs of 21.9% to 42.7% on select European Union dairy imports following an anti-subsidy investigation. The duties, effective Tuesday, largely result in rates around 30% for most companies. Protected origin cheeses including French roquefort and Italian gorgonzola are specifically among the targeted products.
European officials have strongly criticized the tariffs as unwarranted and lacking proper foundation. The Commission’s assessment indicates the investigation is based on questionable allegations without adequate evidence. Brussels is conducting a detailed review and preparing formal objections.
These tariffs represent another phase in trade tensions that emerged in 2023 following the European Commission’s investigation into Chinese EV subsidies. China has retaliated across multiple product categories including spirits, meat, and dairy. Despite maintaining a firm stance, Beijing has occasionally shown willingness to moderate its position in final rulings.
Approximately 60 companies face the new tariffs at varying rates based on cooperation. Arla Foods will pay 28.6% to 29.7% on brands like Lurpak and Castello. Italy’s Sterilgarda Alimenti secured the lowest rate at 21.9%, while FrieslandCampina’s Belgian and Dutch operations face the highest rate of 42.7%. Non-cooperative companies automatically receive maximum penalties.
Chinese dairy producers are expected to benefit from these protective measures as they deal with excess supply and falling prices. Declining birthrates and more cost-conscious consumers have reduced demand. Last year, China imported $589 million in affected dairy products. Authorities previously urged domestic producers to limit output and reduce herd sizes.