Tariff Tensions: The Brandy Battle

Newly announced tariffs by China on European brandies, including Remy Martin, range from 30.6% to 39%, linked to a broader trade dispute involving EU tariffs on Chinese electric vehicles. This move is part of China's ongoing anti-dumping investigations targeting European products.

The Chinese government has declared provisional tariffs between 30.6% and 39% on European brandies such as Remy Martin, as a retaliatory measure following the EU's duties on Chinese electric vehicles. These tariffs are set to apply to imports starting this Friday, requiring importers to deposit the tariff amount with customs.

This decision stems from China's Commerce Ministry's preliminary findings that accused European brandy makers of dumping, which could gravely harm Chinese domestic producers. The tariffs serve a dual purpose: protecting local industries and strengthening China's negotiating position in discussions with the EU regarding the electric vehicle tariffs slated for introduction at the month's end.

France, backing the investigation into Chinese EV exports, may face economic repercussions, especially for its cognac producers. Meanwhile, Germany, cautious due to its automotive interests in China, opposes the broader tariff conflict. This complex trade environment underscores the tense economic relations between China and the EU.

(With inputs from agencies.)