China announced on Friday that it will implement anti-dumping tariffs on European brandy, particularly French cognac, as trade tensions with U.S. allies continue to escalate. The new duties, set to take effect on Saturday, will range from 27.7% to 34.9% and are expected to remain in place for five years, according to China’s Ministry of Commerce. These tariffs will not be applied retroactively.
However, China has agreed to exempt several major cognac producers on the condition that they maintain prices above certain minimum thresholds. French President Emmanuel Macron responded positively to the exemptions, stating on social media that they are “a positive step towards putting an end to the dispute that was threatening our exports.” He also reaffirmed France’s commitment to defending its industry.
The announcement coincided with a visit to Europe by Chinese Foreign Minister Wang Yi, who is seeking to ease trade frictions. Following visits to Brussels and Berlin, Wang is expected to arrive in Paris. French Foreign Trade Minister Jean-Noël Barrot confirmed that he would discuss the brandy issue with Wang during their meeting later on Friday.
China’s decision follows a trade investigation launched last year into European brandy imports. That move came shortly after the European Union began a probe into Chinese subsidies for electric vehicles. According to China’s Ministry of Commerce, the investigation concluded that European brandy had been dumped into the Chinese market, harming domestic producers. The ministry stated there is a direct connection between the dumping and the threat of serious damage to China’s local brandy industry.
Aside from targeting brandy, China has also initiated trade investigations into European pork and dairy products. The brandy case was the first and mainly impacted French producers of cognac and Armagnac.
Previously, China had introduced provisional tariffs ranging from 30.6% to 39% on European brandy, including French producer Rémy Martin. The move followed a decision by most EU nations to back duties on Chinese-made electric vehicles.
Exemptions from the new tariffs include well-known French firms such as Pernod Ricard, Rémy Cointreau, and Hennessy. Minister Barrot welcomed the broad exemptions, describing them as a positive development for many in the cognac and Armagnac sector. However, he pointed out that certain producers were still excluded and emphasized that further discussions were needed.
“We remain fully committed to finding a definitive solution, based on the conditions that existed prior to the investigation,” Barrot said.
Foreign Minister Wang Yi’s European trip is taking place ahead of an upcoming China-EU summit in Beijing, where trade issues are expected to take center stage.
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