The Chinese government announced on Friday (September 5) that a temporary anti-dumping tariff of up to 62.4% will be imposed on pork and related products from the European Union, involving an amount exceeding $2 billion. This move is widely seen as retaliation against the EU’s imposition of tariffs on Chinese electric cars. The EU has vowed to take all necessary measures to defend its domestic industries.
According to the announcement by the Chinese Ministry of Commerce, a preliminary investigation found that there is dumping of pork from the EU, with tariffs to be imposed starting from September 10. Companies from Spain, Denmark, and the Netherlands subject to the investigation will face tax rates ranging from 15.6% to 32.7%, while other companies will be subject to the highest rate of 62.4%.
The investigation was initiated in June 2024, almost overlapping with the EU’s anti-subsidy investigation into Chinese electric cars. The European Commission criticized China’s investigation as being based on “suspicious allegations and lack of evidence.” EU Trade Spokesperson Olof Gill emphasized, “I can assure you that we will take all necessary measures to protect our producers and industries.”
The European agricultural sector has expressed concern over this. Anne Richard, Director General of the French pork industry association (INAPORC), told Reuters, “We are very worried that the European market prices will be affected.”
The EU is the second largest pork-producing region in the world and the largest exporter. China and Hong Kong have long been the largest buyers of EU pork, particularly favoring parts with lower local demand in Europe, such as pig ears, heads, and trotters. However, China’s economy has been sluggish in its recovery post-pandemic, with weak domestic demand, limited consumer spending power, and inflation pressure leading to a significant decrease in import demand.
According to data from the Financial Times, EU pork exports to China and Hong Kong have plummeted from 3.6 million tons in 2020 to 1.18 million tons in 2024, a two-thirds drop.
In addition to pork, China has also initiated anti-subsidy investigations into EU dairy products and implemented anti-dumping measures on brandy. Beijing had previously required the EU to replace the high 45% tariff on electric cars with a “minimum price commitment,” but negotiations collapsed. Observers point out that Beijing is using agricultural products as a bargaining chip to directly impact major European agricultural powers such as Spain, the Netherlands, Denmark, and France.
However, the tariff decision is still preliminary, and the final outcome will be determined after the investigation concludes in December this year. The EU is accelerating diversification efforts, with Gill citing the recent agreement with Mexico to increase market access for exports of pork to the United States, reducing dependence on the Chinese market.