China puts anti-dumping tariff of up to 19.8% on imports of pork from the EU

China will impose tariffs of up to 19.8% on pork imports from the European Union, a drastic drop from preliminary tariffs of up to 62.4%, its Commerce Ministry said Tuesday.

The ministry’s announcement followed an investigation the Chinese side launched into imports of pork from the trading bloc after the EU imposed provisional tariffs on China-made electric vehicles.

Beijing also levied anti-dumping duties on European brandy, most notably cognac produced in France, though major brandy producers received exemptions. Imports of dairy products from the EU likewise were subject to anti-dumping probes.

The EU runs a massive trade deficit with China: over 300 billion euros ($348 billion) last year. However, the trading bloc is a major exporter of pork and key supplier of byproducts such as ears, snouts, feet and other items considered to be delicacies in China.

In September, China ordered preliminary anti-dumping duties, in the form of security deposits, of 15.6% to 32.7% for pork imports from EU companies that collaborated with the anti-dumping investigation, and up to 62.4% for all others.

China’s Commerce Ministry concluded that the EU was dumping pork and pig by-products in China, selling them at prices below production costs or domestic market prices, and harming China’s pork industry. The final tariff rates of 4.9%-19.8% are due to take effect beginning Wednesday and last for five years.

Spain, the Netherlands and Denmark will be the most affected.

The Commerce Ministry said the new tariff will apply to all kind of pork products, fresh, chilled, frozen, dried, pickled, smoked or salted.

It said it had reached its conclusions in an “objective, fair and impartial manner.”

EU exports of pork products to China peaked at 7.4 billion euros ($7.9 billion) in 2020 when Beijing turned to imports to meet domestic demand after its pig farms were devastated by a swine disease. But it has reduced imports as it has rebuilt its herds.