In a bold step to safeguard its dairy sector, China announced final anti-subsidy duties on EU imports effective February 13, 2026. The decision, detailed by the Commerce Ministry on February 12, concludes a detailed 18-month investigation into alleged unfair practices.
It all began with the initiation of the probe last August, targeting dairy products like milk powder and cheese. Early determinations highlighted subsidies from EU governments that enabled below-market pricing, eroding Chinese producers’ competitiveness and causing material injury.
Final results reaffirmed these concerns: subsidies existed, damage was substantial, and causation was undeniable. Following protocol, the Ministry recommended measures to the Tariff Commission, which endorsed a five-year levy to counteract the distortions.
This isn’t just about tariffs; it’s a response to systemic imbalances in global dairy trade. China’s domestic industry, employing millions and vital for nutrition, has suffered lost revenues and factory closures due to the influx. The duties are expected to restore balance, encouraging investment in local innovation and efficiency.
Trade watchers note this aligns with China’s broader strategy against subsidized imports in agriculture. The EU, exporting billions in dairy annually to China, must now recalibrate. Possible retaliations or dialogues loom, but China’s adherence to WTO rules bolsters its defense.
Market impacts will ripple: EU exporters face margin squeezes, while Chinese firms gear up for recovery. Consumers might see varied effects, but policymakers emphasize long-term resilience over immediate costs. As duties kick in, the global dairy landscape shifts, with Asia’s powerhouse asserting greater control.