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China Halves EU Dairy Tariff Threat, But 12% Duty Still Hits Imports

Bloomberg Markets •
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China finalized import tariffs on select European Union dairy products at up to 12%, a significant reduction from initial anti-subsidy probe rates but still a notable burden for EU exporters. The move follows a 2015 investigation into alleged EU subsidies for dairy exports to China, which prompted preliminary duties exceeding 20%. Beijing now imposes duties of 10% to 12% on specific products like whey powder and skimmed milk powder, lower than the initial 15-20% range but higher than zero. This adjustment reflects ongoing trade tensions and Beijing's effort to balance protectionism with market access demands.

The reduced tariffs, while easing immediate pressure, signal China's continued scrutiny of EU agricultural subsidies and could prompt further EU countermeasures. For Chinese consumers, prices for imported dairy may rise modestly, potentially benefiting domestic producers. The 12% duty remains a concrete barrier, though less severe than threatened rates, impacting EU dairy exports valued in the billions annually.