China Strikes Back with Brandy Tariffs on EU Imports

China has imposed temporary anti-dumping measures on brandy imports from the EU, targeting brands such as Hennessy and Remy Martin. This follows the EU's decision to impose tariffs on Chinese EVs. Importers will face security deposits for EU brandy, impacting French exports significantly.

In a decisive move, China has imposed temporary anti-dumping measures on brandy imports from the European Union. This decision targets well-known brands including Hennessy and Remy Martin, after the EU's recent vote for tariffs on Chinese-made electric vehicles (EVs). The measures are expected to significantly affect French exporters.

The Chinese commerce ministry's preliminary investigation revealed that the dumping of European brandy poses a significant threat to China's domestic brandy industry. In a related development, China is also considering raising tariffs on imports of large-engine vehicles, a move that could most impact major German car manufacturers.

Importers of EU brandy are now required to submit security deposits ranging from 34.8% to 39% of the import value starting October 11. The highest percentages apply to brands like Hennessy and Remy Martin. The future of these deposits remains uncertain, and there has been no comment from affected companies or trade bodies in France.

(With inputs from agencies.)