China is set to implement reduced tariffs on various dairy products imported from the European Union (EU), with the new rates ranging from 7.4% to 11.7%, effective from Friday. This follows China's introduction of temporary tariffs in December that were significantly higher, ranging from 21.9% to 42.7%. The Chinese Ministry of Commerce confirmed that these lowered tariffs will remain in effect for five years and will apply to a variety of dairy products including fresh and processed cheese, curd, blue cheese, milk, and cream.

The tariff reduction comes after an investigation launched in August 2024 at the request of the China Dairy Industry Association, which suggested a link between EU subsidies and substantial harm to China's dairy sector. The investigation's findings were announced just as the new tariffs were set to take effect. It reflects China's ongoing scrutiny of foreign agricultural imports and its efforts to protect domestic industries from perceived unfair competition, particularly relating to subsidies that may distort market conditions.

This decision is part of a broader pattern where China has also recently imposed anti-dumping duties on EU pork imports, indicating a tightening of regulations around agricultural products and a possible shift in trade dynamics between China and the EU. The implications of these tariff changes could affect not only trade volumes but also pricing strategies for dairy producers in the EU who rely on the Chinese market for growth, as well as impacting consumers in China who may see price changes as a consequence of these tariffs.