Beijing is escalating its trade defenses against European dairy giants. Starting February 13, 2026, China will impose anti-subsidy duties on dairy products imported from the European Union, following a comprehensive investigation by the Ministry of Commerce.
The probe, launched on August 21, 2024, uncovered clear evidence of unfair subsidies distorting the market. These subsidies have flooded Chinese markets with cheap EU dairy, severely damaging local producers. Preliminary findings in December 2025 confirmed the subsidies caused substantial harm to China’s domestic industry, with a direct causal link established.
After months of rigorous analysis, the final ruling stands firm: EU dairy exports benefited from prohibited subsidies, leading to overcapacity and price undercutting. China’s State Council Tariff Commission has approved duties for a five-year period, aiming to level the playing field.
This move comes amid rising global trade tensions, where China is increasingly assertive in protecting its agricultural sectors. Domestic dairy firms, grappling with declining market shares, welcome the decision as a vital shield against foreign competition. Industry analysts predict a potential 10-20% price stabilization for local products.
The EU, a major exporter of milk powder, cheese, and whey to China, now faces disrupted supply chains. European producers may seek negotiations or WTO challenges, but Beijing’s evidence-based approach strengthens its position. This tariff action underscores China’s commitment to fair trade practices, signaling no tolerance for subsidized dumping.
As implementation looms, importers are scrambling to adjust strategies, possibly shifting to alternative sources like New Zealand or the US. For Chinese consumers, short-term price hikes are possible, but long-term benefits to food security and industry growth are anticipated. This development marks another chapter in the evolving Sino-EU trade saga.