No Final Announcement Yet on EU-China Electric Vehicle Tariff Negotiations

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. The measures are widely interpreted as maintaining pressure during ongoing negotiations.
The European Commission has condemned the move as unjustified and based on inadequate evidence. Officials argue that the investigation relies on questionable allegations without sufficient proof. Brussels is reviewing the decision and preparing formal objections.
Trade friction began in 2023 when the European Commission initiated an investigation into Chinese electric vehicle subsidies. China’s ministry of commerce said negotiations over the bloc’s EV tariffs resumed this month. However, the talks were scheduled to end last week and there has been no announcement since. A senior European diplomat in Beijing said last week that major issues remained between the two sides.
Approximately 60 companies face the new tariffs at varying rates based on cooperation. Arla Foods will pay between 28.6% and 29.7%. Italy’s Sterilgarda Alimenti faces the lowest rate at 21.9%, while FrieslandCampina’s Belgian and Dutch facilities must pay 42.7%. Companies that refused to participate automatically receive maximum penalties.
Chinese dairy producers are likely to welcome these measures as they grapple with oversupply and declining prices. Declining birthrates and budget-conscious consumers have weakened demand. Last year, China imported $589 million in affected dairy products. Authorities have encouraged domestic producers to curtail production.