International-News

China EU Dairy Tariffs Spark Tensions on European Dairy Exports

China imposes tariffs on EU dairy products, affecting milk and cheese exports. European authorities warn of trade challenges and potential impact on high-quality Italian products

The European Union faces a new trade challenge as China EU dairy tariffs come into effect, targeting milk and cheese imports from the EU. The tariffs, announced by the Chinese Ministry of Commerce, range from 21.9% to 42.7% and are a response to alleged subsidies given to EU dairy producers, which Beijing claims caused “substantial harm” to the Chinese dairy industry.

The European Commission expressed concern over the move, with Deputy Chief Spokesperson Olof Gill stating, “We consider the investigation’s claims questionable and the evidence insufficient. The measures are unjustified. We are reviewing the preliminary decision and will respond to Chinese authorities accordingly.” The EU has also taken steps at the World Trade Organization to defend its producers.

Italian dairy exports to China have tripled over the past five years, reaching €71 million in 2024, a 207% increase since 2020, according to Coldiretti and Istat data. Italian cheeses rank as the second most exported agri-food product to China after wine, with the total Italian food export to China surpassing €600 million in 2024. The new Chinese tariffs risk slowing this growth, particularly in the premium segment of the market, where Italian products excel.

This development adds to existing trade pressures on the EU, following U.S. tariffs introduced during Donald Trump’s presidency. The EU-Mercosur trade deal, initially scheduled to be signed recently, has been postponed to January as France and Italy seek further agricultural protections. Amid these pressures, China EU dairy tariffs highlight the growing complexity of global trade and the ongoing risk of protectionist policies spreading across major markets.

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