China’s Commerce Ministry announced on Tuesday that it will lower the tariff ceiling on pork imports from the European Union to 19.8% from the previously announced maximum of 62.4%. The decision comes after a series of anti-dumping investigations triggered by the EU’s provisional tariffs on China-made electric vehicles, which prompted Beijing to scrutinize the pricing and market entry of EU food products.
The final tariff schedule, effective on Wednesday, establishes rates ranging from 4.9% to 19.8% and will remain in force for a period of five years. Spain, the Netherlands and Denmark are projected to experience the most pronounced impact, as they are among the EU members that export the highest volumes of pork to China. The staggered rates reflect the level of cooperation with the anti-dumping investigation and the perceived severity of dumping allegations against individual exporters.
In September, China imposed preliminary anti-dumping duties in the form of security deposits, which ranged from 15.6% to 32.7% for EU companies that cooperated with the investigation, and up to 62.4% for those that did not. These security deposits required importers to post money as a guarantee that the duties would be paid if the investigation confirmed dumping. The investigation was launched in response to the EU’s provisional tariffs on Chinese electric vehicles, a move that triggered reciprocal scrutiny of imports such as pork and pig by-products.
China has also levied anti-dumping duties on European brandy, particularly cognac from France, although major brandy producers received exemptions. In addition, dairy products from the EU are under separate anti-dumping probes, adding further pressure on the bloc’s food exports. These measures are part of a broader anti-dumping framework that targets multiple product categories, indicating China’s intent to enforce market fairness across its import portfolio.
The EU runs a massive trade deficit with China, exceeding 300 billion euros ($348 billion) last year. Pork and pig by-products-ears, snouts, feet and other items prized as delicacies-are a key component of EU exports to China, with pork product exports peaking at 7.4 billion euros ($7.9 billion) in 2020. The high value of these goods underscores the strategic importance of the pork trade for both economies, despite the overall imbalance in trade flows.
After a severe swine disease outbreak devastated China’s pig farms, Beijing turned to EU imports to meet domestic demand. Since then, Chinese imports of EU pork products have declined as the country rebuilt its herds, but the trade relationship remains significant. The ongoing demand for EU pork, coupled with the protective tariffs, creates a dynamic market environment that both exporters and importers must navigate carefully.
The new tariff applies to all pork products, regardless of form: fresh, chilled, frozen, dried, pickled, smoked or salted. This broad coverage means that any EU pork shipment, no matter the processing stage, will be subject to the updated duty rates. The comprehensive nature of the tariff ensures that the protection of China’s pork industry extends across the entire supply chain, from raw cuts to processed items.
The Commerce Ministry said it had reached its conclusions in an “objective, fair and impartial manner.” It also noted that the EU was dumping pork and pig by-products in China, selling them below production costs or domestic market prices, and that this practice harmed China’s pork industry. The ministry emphasized that the anti-dumping investigation was conducted according to international trade rules and that the final tariffs reflect the findings of that inquiry.
Key Takeaways:
- China lowers EU pork tariff ceiling from 62.4% to 19.8%.
- Tariffs become effective on Wednesday and will last for five years.
- Spain, Netherlands and Denmark will feel the most significant impact.
- The tariff applies to all pork products, including fresh, chilled, frozen, dried, pickled, smoked and salted varieties.
- Anti-dumping duties also target European brandy and dairy products.
- The EU runs a trade deficit with China exceeding 300 billion euros.
- Pork exports peaked at 7.4 billion euros in 2020.
The tariff adjustment will have a tangible effect on EU pork exporters, many of whom rely on China as a key market. With rates capped at 19.8% and the lowest at 4.9%, companies will need to re-evaluate their pricing models and possibly seek alternative markets. The five-year horizon provides a degree of predictability, but the broader anti-dumping framework-including duties on brandy and dairy-creates a complex export environment that may require strategic adjustments across the EU’s food-export sector.
China’s decision reflects its broader strategy to safeguard domestic agriculture while managing trade disputes with the EU. The anti-dumping investigations, triggered by the EU’s provisional tariffs on electric vehicles, illustrate a tit-for-tat approach that could influence future negotiations. EU officials have not yet issued a formal response, but the new tariff regime is likely to prompt further dialogue on trade practices and market access between the two economies.
The anti-dumping duties on European brandy, especially cognac from France, have already prompted several major producers to seek exemptions or to adjust their export strategies. While the exemptions reduce the immediate burden on large brands, smaller producers may face higher costs or tighter market access. Similarly, the ongoing dairy probe means that EU milk, cheese and related products could encounter additional scrutiny, potentially affecting pricing and supply chains across the continent.
China’s broader trade policy aims to protect domestic industries while addressing perceived unfair practices by foreign competitors. The recent tariff adjustments on pork, brandy and dairy reflect a pattern of reciprocal measures that have emerged in the wake of the EU’s electric-vehicle tariffs. Analysts note that these actions may lead to a recalibration of trade relationships, prompting both sides to negotiate new terms or seek alternative markets to mitigate the impact of protectionist policies.
China’s domestic pork industry has rebounded from the 2018 swine fever crisis, yet it remains sensitive to foreign competition. The new tariff regime is designed to shield local producers from lower-priced EU imports, ensuring that domestic pork prices stay stable and that farmers can maintain profitability.
