The provisional tariffs of between 30.6% and 39% on imported brandy from Europe have recently been imposed by China, particularly focusing on French manufacturers Hennessy and Remy Martin.
This is a retaliation to the huge tariffs of up to 35.3% imposed by the European Union on electric vehicles imported from China. On the tariffs imposed, China justified its brandy tariffs as an “anti-dumping” measure against its national producers, saying that importation of European brandy crippled local industries.
Such an action is considered retaliatory to French authorities as well as to brandy producers, especially that France accounts for 99% of brandy exports to China. New tariffs imposed by the Chinese government would cause a dramatic impact on the industry as prices may be raised and the chances of selling may be lessened in the country.
Thus, the cognac industry in France urged the call to intervene with the government in order not to let these tariffs devastate the industry. Meanwhile, the European Commission said it will file a complaint at the World Trade Organization against China’s move as part of an abuse of trade defense measures.
