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@BFMTVChina to impose a tax on cognac imports
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China Imposes Up to 34.9% Tariff on EU Brandy Amid Wider Trade Row
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China’s Ministry of Commerce said it will impose anti-dumping duties of 27.7% to 34.9% on brandy imported from the European Union for five years, starting 5 July. The decision, announced on 4 July, follows a year-long investigation centred on cognac, France’s flagship export, and deepens trade frictions between Beijing and Brussels.
The levy will be waived for 34 European producers, including Pernod Ricard’s Martell and Rémy Cointreau’s Rémy Martin, that have agreed to sell at or above a minimum price accepted by Chinese regulators. Imports priced below that threshold will face the full tariff, the ministry said.
The ruling comes a week after French distillers reached a tentative agreement with Beijing on minimum import prices. Chinese officials signalled that finalising that deal would depend on progress in separate negotiations over EU tariffs on Chinese-made electric vehicles, underscoring how the liquor dispute has become entangled with a broader trade row.
China buys about a quarter of France’s cognac and is the spirit’s most valuable overseas market. Industry data show monthly shipments to China have fallen by as much as 70% since provisional measures were introduced last year, adding pressure to producers already grappling with softer sales in the United States. The new duties, alongside recently extended Chinese levies on European stainless steel, heighten tensions ahead of further EU-China talks on trade remedies.
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