China will reduce anti-subsidy duties on EU dairy imports to between 7.4% and 11.7%, easing trade tensions after recent deals on EVs, pork and cognac.

BEIJING: China will reduce duties on certain dairy products imported from the European Union from Friday.

The commerce ministry in Beijing announced the new anti-subsidy levies, which will range from 7.4% to 11.7% and be imposed for five years.

The move continues an easing of trade tensions between the two major economies.

It follows recent agreements on minimum prices for Chinese electric vehicles exported to the EU and reduced duties for European cognac and pork products sold to China.

The ministry stated the levies are being imposed after an investigation found “certain dairy products originating from the EU were subsidised, causing substantial damage to the dairy industry in China”.

The new rates are a significant reduction from the 21.9% to 42.7% tariffs China imposed in December.

The duties apply to a range of items including fresh and processed cheese, curd, blue cheese and some milk and cream.

Thursday’s announcement marks the conclusion of an anti-subsidy probe launched by Chinese officials in August 2024.

Last month, the EU said Chinese electric carmakers could agree to minimum import prices instead of facing tariffs.

Beijing welcomed that outcome as a “soft-landing” in the dispute over the sector.

Beijing also reduced levies on EU pork products in December.

It reached a separate agreement on minimum prices with EU brandy and cognac makers last year.

 The Sun Malaysia