China Cuts Cheese Tariffs, Offering Relief to Italian Dairy Exports

China has announced a significant cut in import tariffs on European cheeses, offering a major boost to Italian dairy exports, one of the cornerstones of the country’s agri-food sector, which generates around €6bn in overseas sales.

Chinese authorities said duties will be reduced from the current regime — which ranged from a minimum of 28.6% to a peak of 42.7% — to a new band between 9.5% and 11.7%. The tariff system had been introduced a year ago as part of Beijing’s response to EU measures on imports of Chinese electric motors, targeting European cheeses in what industry groups viewed as a politically driven move. The latest decision significantly scales back that penalty.

According to Assolatte, the Italian dairy industries association, “pending a full assessment of the reasoning, the outcome indicates that Beijing has recognised at least part of the defensive arguments put forward by the European Union.” Initially, Chinese authorities had sought to verify whether certain support measures for dairy farming under the EU’s Common Agricultural Policy (CAP) could distort prices of products exported to the Chinese market.

The new tariff level undoubtedly represents a relief for the sector,” said Assolatte president Paolo Zanetti. “With a maximum duty of 11.7%, the market remains viable. Credit goes to the coordinated work of the European Commission, national governments, and the companies involved, many of which are Italian, but also French and Spanish.”

Since provisional Chinese duties were first introduced, Italian cheese exports to China have fallen by 17% in volume and 20% in value. “That decision interrupted an important growth trend,” Assolatte added. “In 2024, our shipments to China had increased by 31% compared with the previous year.”

Italy currently exports around 10,000 tonnes of cheese to China, generating a turnover of approximately €70m, making it the leading EU supplier. Overall, European cheeses account for €185m in sales in the Chinese market.

Product mix is a defining feature of Italy’s performance. “Seventy-five per cent of the 10,000 tonnes shipped to China consists of mascarpone,” Zanetti said. “The Chinese have a real passion for tiramisù. There is hardly a restaurant in Beijing — though less so in inland areas — that does not feature the famous Italian dessert on its menu. Moreover, Chinese consumers believe Italian mascarpone is by far the best raw material for making it.” The remaining 25% of Italian cheese exports to China consists of PDO Grana Padano, Parmigiano Reggiano, Gorgonzola, and cow’s milk mozzarella.

China remains the world’s largest importer of dairy products and ingredients, making access to its market critical for European exporters seeking outlets for high-value products amid slower demand growth at home.

The tariff cuts align with a broader easing of EU-China trade tensions. China has recently lowered provisional import duties on EU dairy products following an anti-dumping and anti-subsidy investigation by the Ministry of Commerce. The revised measures reduce the maximum duty to 11.7%, down from rates imposed in December, according to notifications sent by the European Commission to industry groups. Several major European dairy producers, including Denmark’s Arla Foods and France’s Lactalis, will face a lower tariff rate of 9.5%, industry bodies said.

The duties had been introduced after China alleged that subsidised EU dairy exports were depressing domestic prices, particularly in cheese and high-fat cream. European dairy groups have strongly disputed the claim, arguing that EU support measures comply with World Trade Organization rules and have no material impact on Chinese markets. “The decision is undoubtedly a positive result,” Zanetti added, “as it scales back a penalty imposed once again for reasons completely unrelated to our sector. It also partly compensates us for another disappointment: our total exclusion from the recent EU-India agreement.” The dairy sector was left out of negotiations due to India’s ban on the use of animal rennet, which is deemed unsuitable for the country’s predominantly vegetarian population. “This was a decision we were unable to counter in any way,” Zanetti said, “not even with the proposal of a specific labelling indication.”

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