China has announced provisional anti-subsidy duties on EU dairy imports, citing harm to domestic producers, raising the prospect of further escalation in already strained EU–China trade relations.
China will impose provisional duties ranging from 21.9% to 42.7% on dairy products imported from the European Union, with most exporters facing rates just under 30%.
The measures, effective from 23 December 2025, apply to products such as unsweetened milk and cream, as well as fresh and processed cheeses.
China’s Ministry of Commerce said its investigation found that EU dairy imports were subsidised and harming domestic producers.
The European Commission rejected this finding, calling the measures unjustified and based on insufficient evidence, and confirmed that they have already raised the issue at the World Trade Organisation. EU officials are reviewing China’s preliminary ruling and will submit comments ahead of the investigation’s conclusion on 21 February 2026. The decision is provisional and could still be revised, as seen recently with China’s pork tariffs.
However, it adds to mounting trade tensions that began in 2023 after the EU launched an anti-subsidy probe into Chinese electric vehicles and imposed tariffs in October 2024.
Since then, China has taken action against EU brandy, pork, and most recently dairy products.
While talks on resolving the EV dispute have resumed, both sides acknowledge that key differences remain.
Earlier, on 25 April 2025, the EU Economic Commissioner Valdis Dombrovskis urged Chinese officials, including China’s finance minister and central bank governor, not to flood EU markets with goods redirected from the US due to tariffs imposed on Chinese products. He also warned the EU would act to protect its markets if Chinese imports became a significant threat.
