Arla Foods Ownership of Multiple Brands Concentrates Chinese Tariff Impact

Beijing has announced provisional anti-subsidy tariffs of 21.9% to 42.7% on European Union dairy products starting Tuesday. Arla Foods, owner of brands such as Lurpak and Castello, faces concentrated impact with tariffs between 28.6% and 29.7% affecting multiple product lines.
The European Commission has rejected the tariffs as illegitimate and poorly substantiated. Spokesperson Olof Gill stated that the investigation is based on questionable allegations and insufficient evidence. Brussels is examining the decision and preparing formal comments.
Trade tensions escalated in 2023 when Europe began investigating subsidies for Chinese electric vehicle manufacturers. China has responded with tariffs on multiple European products. The impact on multi-brand companies like Arla Foods demonstrates how tariffs affect corporate portfolios.
About 60 companies, including Arla Foods, will pay tariffs between 28.6% and 29.7% on their complete product range. Italy’s Sterilgarda Alimenti will pay the lowest rate of 21.9%, while FrieslandCampina Belgium and FrieslandCampina Nederland will pay the highest rate of 42.7%. Companies that did not participate in the investigation will pay the highest rate.
Chinese dairy producers are expected to benefit from these protective measures as they deal with excess supply and falling prices. Declining birthrates and budget-conscious consumers have reduced demand. Last year, China imported $589 million in affected dairy products. Authorities previously urged domestic producers to limit output and reduce herd sizes.