China slaps up-to-62.4% tariffs on EU pork in retaliation over EV tariffs

China has imposed provisional anti-dumping duties of up to 62.4% on pork imports from the EU, the Ministry of Commerce said Sept. 5, escalating a trade dispute over electric vehicle tariffs.

The ministry said its year-long investigation found EU exporters were "dumping" pork and pig byproducts in the Chinese market, causing "substantial damage" to domestic producers.

The duties, which take effect Sept. 10, will apply as cash deposits until the probe concludes in December.

Exporters that cooperated with the investigation mainly from Spain, Denmark and the Netherlands received rates of 15.6%-32.7%, while all others face the maximum levy of 62.4%.

The measures cover imports worth more than $2 billion annually, including items such as pig ears, noses and feet that are highly valued in Chinese cuisine but have little demand in Europe.

The move comes after Brussels imposed tariffs of up to 45% on China-made electric vehicles, a decision that Beijing has widely denounced as protectionist. It follows earlier Chinese probes into European brandy and dairy exports, signaling a widening tit-for-tat trade conflict.

European producers warned of severe repercussions for an industry already strained by falling demand, disease outbreaks and rising costs.

The EU is the world's largest pork exporter, shipping around 13% of its annual production abroad, with China as the single biggest buyer. According to estimates, Spain, Denmark and the Netherlands alone sold pork worth over $2.5 billion/year into China.

Copa and Cogeca, the EU's main farm lobby, said the sector was being unfairly dragged into geopolitical disputes.

"It is unacceptable that European pigmeat producers are being forced to pay the price for political trade disputes," said Antonio Tavares, chair of Copa-Cogeca's Working Party on Pigmeat. "The European Commission must urgently rethink its trade policy and ensure that the farming sector is not treated as a bargaining chip in international negotiations."

The European Commission said it considered Beijing's investigation to be based on "questionable allegations and insufficient evidence" and vowed to defend EU producers.

Analysts said the duties would not significantly raise Chinese consumer prices but would erode margins for EU exporters, while adding pressure to Europe's internal pigmeat market.

The bloc has also recently made development of its market further to US and South American pork under new trade deals.

With China producing more than half the world's pork and accounting for over half of EU exports, the restrictions could reshape global trade flows.

Industry sources warned earlier this year that a full suspension of EU pork exports to China would be a "nightmare scenario" for the supply chain, displacing millions of tons into alternative markets and depressing farmgate prices.

For now, the duties remain provisional. But with the investigation set to conclude at year-end and negotiations between Beijing and Brussels over EV tariffs stalled, industry officials see slim chances of an early resolution.

Platts, part of S&P Global Energy, assessed EU pork marker $4,440/mt on Sept. 5, up $28/mt day on day.

Platts assessed pork belly CFR North Asia at $5,560/mt on Sept. 4, unchanged from the previous assessment.