Latest news with #HervéDumesny
Fashion Network
21 hours ago
- Business
- Fashion Network
LVMH cognac makers spared from China's tariffs, but EU spirits sector remains under pressure
China has opted to exempt key cognac producers — including LVMH, Pernod Ricard and Rémy Cointreau — from newly announced tariffs of up to 35% on EU brandy, provided they agree to minimum pricing terms. The decision follows months of tension between the EU and China over anti-dumping investigations and comes as luxury groups continue to navigate shifting regulatory landscapes in global markets. The exemption applies only to companies that commit to selling above a set minimum price. For other producers — or those who breach the agreed price terms — China will apply duties of up to 34.9% for a period of five years, beginning Saturday, according to a statement from the Chinese government. SpiritsEUROPE, the trade body representing EU spirits producers, welcomed the partial relief for major cognac houses but warned that broader punitive measures remain in place. The organisation called for all restrictions to be lifted, noting that such tariffs risk further straining EU–China trade relations at a time when collaboration is essential. 'While we welcome the conclusion of price undertakings with certain companies, we urge that this option be extended to all compliant firms,' said SpiritsEUROPE Director General Hervé Dumesny. For LVMH, whose Moët Hennessy division includes high-end cognac labels such as Hennessy, China remains a critical growth market not only for wines and spirits, but also across fashion, jewellery and cosmetics. Any escalation in trade disputes — even outside of fashion — could influence wider sentiment and regulatory scrutiny toward European luxury brands operating in the region. The move echoes past trade tensions, such as the delisting of the e-commerce platform Wish in 2021, and reinforces how trade disputes across categories — including spirits — can have ripple effects on broader luxury exports. With China representing a key consumer base for European luxury houses, evolving tariff frameworks remain closely monitored across the sector, particularly as brands continue to adapt to shifting consumer behaviour and geopolitical uncertainty.
Fashion Network
a day ago
- Business
- Fashion Network
LVMH cognac makers spared from China's tariffs, but EU spirits sector remains under pressure
China has opted to exempt key cognac producers — including LVMH, Pernod Ricard and Rémy Cointreau — from newly announced tariffs of up to 35% on EU brandy, provided they agree to minimum pricing terms. The decision follows months of tension between the EU and China over anti-dumping investigations and comes as luxury groups continue to navigate shifting regulatory landscapes in global markets. The exemption applies only to companies that commit to selling above a set minimum price. For other producers — or those who breach the agreed price terms — China will apply duties of up to 34.9% for a period of five years, beginning Saturday, according to a statement from the Chinese government. SpiritsEUROPE, the trade body representing EU spirits producers, welcomed the partial relief for major cognac houses but warned that broader punitive measures remain in place. The organisation called for all restrictions to be lifted, noting that such tariffs risk further straining EU–China trade relations at a time when collaboration is essential. 'While we welcome the conclusion of price undertakings with certain companies, we urge that this option be extended to all compliant firms,' said SpiritsEUROPE Director General Hervé Dumesny. For LVMH, whose Moët Hennessy division includes high-end cognac labels such as Hennessy, China remains a critical growth market not only for wines and spirits, but also across fashion, jewellery and cosmetics. Any escalation in trade disputes — even outside of fashion — could influence wider sentiment and regulatory scrutiny toward European luxury brands operating in the region. The move echoes past trade tensions, such as the delisting of the e-commerce platform Wish in 2021, and reinforces how trade disputes across categories — including spirits — can have ripple effects on broader luxury exports. With China representing a key consumer base for European luxury houses, evolving tariff frameworks remain closely monitored across the sector, particularly as brands continue to adapt to shifting consumer behaviour and geopolitical uncertainty.
Fashion Network
a day ago
- Business
- Fashion Network
LVMH cognac makers spared from China's tariffs, but EU spirits sector remains under pressure
China has opted to exempt key cognac producers — including LVMH, Pernod Ricard and Rémy Cointreau — from newly announced tariffs of up to 35% on EU brandy, provided they agree to minimum pricing terms. The decision follows months of tension between the EU and China over anti-dumping investigations and comes as luxury groups continue to navigate shifting regulatory landscapes in global markets. The exemption applies only to companies that commit to selling above a set minimum price. For other producers — or those who breach the agreed price terms — China will apply duties of up to 34.9% for a period of five years, beginning Saturday, according to a statement from the Chinese government. SpiritsEUROPE, the trade body representing EU spirits producers, welcomed the partial relief for major cognac houses but warned that broader punitive measures remain in place. The organisation called for all restrictions to be lifted, noting that such tariffs risk further straining EU–China trade relations at a time when collaboration is essential. 'While we welcome the conclusion of price undertakings with certain companies, we urge that this option be extended to all compliant firms,' said SpiritsEUROPE Director General Hervé Dumesny. For LVMH, whose Moët Hennessy division includes high-end cognac labels such as Hennessy, China remains a critical growth market not only for wines and spirits, but also across fashion, jewellery and cosmetics. Any escalation in trade disputes — even outside of fashion — could influence wider sentiment and regulatory scrutiny toward European luxury brands operating in the region. The move echoes past trade tensions, such as the delisting of the e-commerce platform Wish in 2021, and reinforces how trade disputes across categories — including spirits — can have ripple effects on broader luxury exports. With China representing a key consumer base for European luxury houses, evolving tariff frameworks remain closely monitored across the sector, particularly as brands continue to adapt to shifting consumer behaviour and geopolitical uncertainty.
Fashion Network
a day ago
- Business
- Fashion Network
LVMH cognac makers spared from China's tariffs, but EU spirits sector remains under pressure
China has opted to exempt key cognac producers — including LVMH, Pernod Ricard and Rémy Cointreau — from newly announced tariffs of up to 35% on EU brandy, provided they agree to minimum pricing terms. The decision follows months of tension between the EU and China over anti-dumping investigations and comes as luxury groups continue to navigate shifting regulatory landscapes in global markets. The exemption applies only to companies that commit to selling above a set minimum price. For other producers — or those who breach the agreed price terms — China will apply duties of up to 34.9% for a period of five years, beginning Saturday, according to a statement from the Chinese government. SpiritsEUROPE, the trade body representing EU spirits producers, welcomed the partial relief for major cognac houses but warned that broader punitive measures remain in place. The organisation called for all restrictions to be lifted, noting that such tariffs risk further straining EU–China trade relations at a time when collaboration is essential. 'While we welcome the conclusion of price undertakings with certain companies, we urge that this option be extended to all compliant firms,' said SpiritsEUROPE Director General Hervé Dumesny. For LVMH, whose Moët Hennessy division includes high-end cognac labels such as Hennessy, China remains a critical growth market not only for wines and spirits, but also across fashion, jewellery and cosmetics. Any escalation in trade disputes — even outside of fashion — could influence wider sentiment and regulatory scrutiny toward European luxury brands operating in the region. The move echoes past trade tensions, such as the delisting of the e-commerce platform Wish in 2021, and reinforces how trade disputes across categories — including spirits — can have ripple effects on broader luxury exports. With China representing a key consumer base for European luxury houses, evolving tariff frameworks remain closely monitored across the sector, particularly as brands continue to adapt to shifting consumer behaviour and geopolitical uncertainty.
Euractiv
a day ago
- Business
- Euractiv
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)
