2 days ago
China slaps tariffs on EU brandy, exempts top Cognac brands
Anti-dumping tariffs of up to 34.9% will be imposed on brandy imports from the European Union for five years starting on 5 July, the Chinese Ministry of Commerce announced on Friday. Major Cognac producers who have already begun raising their prices will be exempt.
The move follows a months-long anti-dumping investigation by Chinese authorities, widely viewed as a retaliatory response to the EU's tariffs on Chinese electric vehicles.
In a statement released on 4 July, Beijing claimed that certain European brandy labels were being sold on the Chinese market at unfairly low prices, threatening the domestic spirits industry and thereby justifying the new tariffs.
Throughout the investigation, the EU and French authorities – home to renowned spirits such as Cognac and Armagnac – engaged in intensive diplomatic efforts to prevent the imposition of tariffs. Those efforts were not in vain. Partial relief for the industry In a bid to avoid the new tariffs, several European producers have agreed to sell their products above a set minimum price on the Chinese market, including major Cognac brands such as Pernod Ricard, Rémy Cointreau, and Hennessy. From 5 July, these companies will be allowed to trade under this pricing arrangement as an alternative to the duties.
Moreover, China's Ministry of Commerce has confirmed that security deposits paid since October 2024 will be reimbursed, offering some relief to affected importers. Regrets and concerns Still, the decision has drawn criticism from Brussels. "The EU regrets China's decision to impose definitive anti-dumping measures on imports of European brandy into China," a spokesperson told journalists.
Hervé Dumesny, director general of spiritsEUROPE – the European spirits industry organisation – also expressed 'deep regret' over what he described as unjustified measures, in a statement issued on Friday.
'Beyond its direct impact on our sector, this decision risks fuelling trade tensions at a time when mutual cooperation is more important than ever,' he said.
While many EU producers remain outside the price arrangements and will be subject to the full force of the new tariffs, "we urge that this option be extended to all companies that have signed up", Dumesny added.
(adm, aw)
