China's New Tariffs on European Brandy: What It Means for Trade Relations

China Imposes Tariffs on European Brandy Amid Trade Tensions

Beijing: On Friday, China announced the implementation of anti-dumping tariffs on European brandy, particularly targeting French cognac, as tensions escalate between Beijing and its trading partners in the West.

According to China's Commerce Ministry, these tariffs will range from 27.7% to 34.9% and will be effective starting Saturday, remaining in place for a duration of five years without retroactive application.

This decision coincided with a visit by Chinese Foreign Minister Wang Yi to Europe, where he aimed to resolve ongoing trade disputes. His itinerary included stops in Brussels and Berlin, with Paris next on the list.

The tariffs stem from an investigation initiated by China last year into European cognac, following a probe by the European Union into subsidies for Chinese electric vehicles.

China's Commerce Ministry stated, "The investigative authority has concluded that the dumping of imported brandy from the EU is occurring, posing a significant threat to the domestic brandy industry, with a clear causal link between the dumping and the potential harm."

In addition to cognac, China is also examining European pork and dairy products. The cognac investigation primarily focused on French producers and similar spirits like Armagnac.

Initially, China had set provisional tariffs of 30.6% to 39% on French cognac brands such as Remy Martin, following the EU's approval of tariffs on Chinese electric vehicles.

Wang Yi is scheduled to meet with his French counterpart, Jean-Noel Barrot, later on Friday in Paris.

This European tour precedes a China-EU summit focused on trade, set to take place later this month in Beijing.