China Says Carrying Out US Trade Framework, Rejects ‘Coercion'
Both countries have been acting on the outcomes of the London framework, the ministry said in a statement.
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China imposes anti-dumping duties on European brandy as trade tensions rise
BEIJING -- China on Friday imposed anti-dumping duties on European brandy, most notably cognac produced in France, as trade tensions between Beijing and United States allies continue to rise. The tariffs, effective on Saturday, will range from 27.7% to 34.9%, China's Commerce Ministry said. They are to be in place for five years and will not be applied retroactively. The announcement came during a European visit by Chinese Foreign Minister Wang Yi aimed at ironing out trade differences. Wang was set to visit Paris after stops in Brussels and Berlin. The anti-dumping duties are the result of a probe China launched last year into European cognac, after the European Union undertook a probe into Chinese electric vehicles subsidies. 'The investigative authority finally ruled that the dumping of related imported brandy from the EU has existed,' read a statement by China's Commerce Ministry. 'The domestic brandy industry faces a material threat of damage, and there is a causal relationship between the dumping and the substantial damage threat.' Besides cognac, China has also launched investigations into European pork and dairy products. The brandy probe was the first and targeted mainly French makers of cognac and similar spirits such as Armagnac. China initially announced provisional tariffs of 30.6% to 39% on French cognac producer Remy Martin and other European brandies after a majority of E.U. countries approved duties on electric vehicles made in China. Wang was set to meet his French counterpart, Jean-Noël Barrot, later Friday in Paris.
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an hour ago
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5 Must-Read Analyst Questions From Applied Materials's Q1 Earnings Call
Applied Materials met Wall Street's expectations in the first quarter of 2025, but the market reacted negatively, reflecting concerns that surfaced during the earnings call. Management highlighted strong demand for AI-enabling semiconductors and robust performance in leading-edge foundry and DRAM segments as primary growth drivers. CEO Gary Dickerson noted, 'Our customers remain focused on winning the race to be first-to-market with transformative new technologies,' yet acknowledged that trade restrictions and a weaker 200-millimeter equipment market, especially in China, affected the company's service segment. CFO Brice Hill cited the 'rapidly evolving economic and trade policy environment' as a challenge that the company continues to navigate. Is now the time to buy AMAT? Find out in our full research report (it's free). Revenue: $7.1 billion vs analyst estimates of $7.13 billion (6.8% year-on-year growth, in line) Adjusted EPS: $2.39 vs analyst estimates of $2.31 (3.4% beat) Adjusted EBITDA: $2.28 billion vs analyst estimates of $2.24 billion (32.2% margin, 2% beat) Revenue Guidance for Q2 CY2025 is $7.2 billion at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q2 CY2025 is $2.35 at the midpoint, above analyst estimates of $2.31 Operating Margin: 30.5%, up from 28.8% in the same quarter last year Inventory Days Outstanding: 142, up from 136 in the previous quarter Market Capitalization: $153.3 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Stacy Rasgon (Bernstein Research) asked about ongoing weakness in the AGS segment, especially due to China trade restrictions. CFO Brice Hill explained that core services will continue to grow at a low double-digit rate, but 200-millimeter equipment sales remain subdued. Vivek Arya (Bank of America Securities) questioned the impact of mature node (ICAPS) exposure on growth. Hill clarified that ICAPS markets are expected to grow mid-to-high single digits, with China's 28-nanometer investments seen as an opportunity for Applied Materials. C.J. Muse (Cantor Fitzgerald) probed gross margin sustainability amid tariff pressures. Hill stated that flexible manufacturing, value-based pricing, and cost management should hold margins in the low 48% range, with ongoing improvements anticipated. Melissa Weathers (Deutsche Bank) asked about DRAM spending trends and the balance between cyclical lows and AI-driven growth. CEO Gary Dickerson emphasized strong DRAM demand led by high-bandwidth memory and the company's market share gains in this segment. Krish Sankar (TD Cowen) explored competitive dynamics in process tools and the rationale behind the BESI investment. Dickerson highlighted Applied's positioning at key technology inflections and deep customer collaborations as differentiators. In the coming quarters, the StockStory team will be monitoring (1) the pace of adoption for advanced AI and memory products, (2) the impact of evolving trade restrictions and tariffs on both equipment and services revenue, and (3) the ability of Applied Materials to sustain margin improvements through manufacturing efficiencies and cost controls. Progress on these fronts will help determine whether recent investments translate into durable, profitable growth. Applied Materials currently trades at $190.86, up from $174.59 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
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an hour ago
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China hits Europe's brandy exports with duties but adds exemptions
French drink manufacturers are bracing for losses as China said it would place a heavy trade duty on brandy exports from the European Union, potentially taking a gulp out of their sales in the coming years. A tariff rate on EU brandy could go up to 34.9% for five years from 5 July. The duty was announced after China's Ministry of Commerce concluded an investigation into European brandy imports, determining that the products threatened its national brandy industry. Cognac, which is heavily exported from France, was a product of concern, although major cognac makers like Pernod Ricard and Remy Cointreau will now be exempted. China's investigation ruled that the EU had engaged in spirit 'dumping', a practice where foreign goods are sold significantly below their normal price. The corrective tariff will be charged in addition to a normal customs duty. Belgium-based trade group spiritsEUROPE, representing EU producers of spirit drinks, said in a statement that it 'regrets today's decision by the Chinese Ministry of Commerce to impose final anti-dumping duties averaging 32.2% on EU wine-based spirits, marc-based spirits, and brandies as of 5 July,' adding that 'the measures will still pose a significant barrier to legitimate trade'. The trade group also said that the EU spirits sector provided 'substantial evidence over the last 18 months, clearly demonstrating the absence of any dumping practices on the Chinese market'. 'The decision originates from a spat around unfair competition and protectionism and it is bad news for European drinks companies who enjoy big sales to Asia,' said Dan Coatsworth, investment analyst at AJ Bell. 'That explains why shares in Rémy Cointreau and Pernod Ricard were weak on the news as drinkers in China might think twice about buying their products if the price is now much higher.' The news pulled down French spirits makers' share prices, with Pernod Ricard slumping 1%, Remy Cointreau down 1.75%, and luxury giant LVMH, the parent company of Hennessy and Rémy Martin, losing 2.1% around 11 CEST in Europe. Related China holds off on EU brandy tariffs as subsidy spat drags on China's anti-trust tariffs over brandy come under fire Closer to midday, share price losses moderated after news broke that China spared major cognac producers from the new duties, provided they sell at a minimum price. Trade group spiritsEUROPE welcomed the partial relief, saying that 'to safeguard their operations and maintain a stable presence in the Chinese market, several affected companies have entered into price undertakings (raising export prices) with MOFCOM (China's Ministry of Commerce)', adding that these will replace anti-dumping duties for these companies. The group urged Beijing to expand this option to all European companies affected. SpiritsEUROPE Director General Hervé Dumesny said 'Beyond its direct impact on our sector, this decision risks fuelling trade tensions at a time when mutual cooperation is more important than ever.' The decision on brandy comes after the EU decided to impose tariffs as high as 45% on Chinese-made electric vehicles last year.
