China has reduced proposed tariffs on certain dairy products from the European Union as it concludes an anti-subsidy investigation widely seen as retaliation for EU levies on Chinese electric cars, two European industry associations said.

In final tariffs communicated to the European side, China is proposing additional duties of up to 11.7%, compared with a maximum rate of 42.7% in provisional duties announced in December, the European Dairy Association (EDA) and Eucolait told Reuters. Many of the companies would be subject to a 9.5% rate, they said.

The European Commission and the Chinese Ministry of Commerce could not be immediately reached outside working hours.

• The dairy probe covers products including cream and cheese, and follows scrutiny of brandy and pork
• Reduced rates would make it difficult for EU products to compete in China, Alexander Anton, the EDA's secretary general , said. "It's a success but you're still out of the game."
• China imported $589 million of EU dairy products covered by the current investigation in 2024
• Higher tariffs on EU imports could favour other foreign suppliers like New Zealand
• It could also bring relief for local Chinese producers grappling with a glut of milk and falling prices against a backdrop of sluggish demand.

Source: Reuters

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