European Commission Statement Attacks Investigation Methodology and Evidence Base

China has concluded the first phase of an anti-subsidy investigation by imposing provisional tariffs between 21.9% and 42.7% on European dairy imports. The measures, effective from Tuesday, have drawn sharp methodological criticism from Brussels.
The European Commission attacked the decision as “unjustified and unwarranted” and said it was examining it and would provide comments to the Chinese authorities. Spokesperson Olof Gill emphasized that the Commission’s assessment is that the investigation is based on questionable allegations and insufficient evidence, making the resulting tariffs illegitimate.
The dispute originated in 2023 when the European Commission launched an investigation into Chinese electric vehicle subsidies. Beijing has systematically retaliated with tariffs on European brandy, pork, and now dairy products. Despite maintaining pressure, China has occasionally demonstrated flexibility in final rulings.
The tariff structure affects around 60 companies with differentiated rates. Arla Foods will pay between 28.6% and 29.7%. Sterilgarda Alimenti received the most favorable treatment at 21.9%, while FrieslandCampina’s operations face the steepest penalties at 42.7%. Non-participating companies automatically receive maximum tariffs.
The protective measures arrive as Chinese dairy producers struggle with surplus production and declining profitability. Falling birthrates and budget-conscious consumers have reduced demand. Last year, China imported $589 million in affected dairy products. The government has urged domestic producers to scale back output and reduce the number of older, less productive cattle.