China Slaps Provisional Tariffs On European Brandy, Cognac

Chinese consumers may soon face higher prices for Rémy Martin cognac and European brandies after the government announced provisional tariffs of 30.6% to 39% on these liquors.

China has launched a series of anti-dumping investigations into European brandy, pork, and dairy products as the EU’s year-long investigation into Chinese EV exports progresses.

The move comes four days after a majority of European Union (EU) countries approved duties on electric vehicles (EVs) made in China. Ken Moritsugu reported for the Associated Press (AP).

This tit-for-tat response could provide Chinese negotiators with leverage in discussions with the EU over reducing or eliminating the tariffs of up to 35.3% on Chinese EVs, which are scheduled to take effect at the end of this month.

The brandy tariffs require importers to deposit the tariff amount with Chinese customs starting Friday.

The decision follows a preliminary conclusion by China’s Commerce Ministry in late August, which found that European brandy was being dumped in China, causing “substantial damage” to domestic producers.

Martell products face a 30.6% tariff, while Rémy Martin and Hennessy face 38.1% and 39%, respectively. The tariffs affect dozens of companies, including some Spanish brandy makers.

China has launched a series of anti-dumping investigations into European brandy, pork, and dairy products as the EU’s year-long investigation into Chinese EV exports progresses.

The brandy probe primarily targets French cognac makers and similar spirits such as Armagnac.

While France has supported the investigation into Chinese-made EVs, Germany, whose automakers fear retaliation in the Chinese market, has opposed it. China is also considering raising tariffs on imported vehicles with large engines, confirmed a spokesperson from the Commerce Ministry in a report from state broadcaster CCTV.