China's Trade Retaliation: Brandy Tariffs in the Crosshairs

China introduces temporary anti-dumping measures on EU brandy imports, affecting notable French brands such as Hennessy and Remy Martin, following EU's tariff decision on Chinese electric vehicles. Rising trade tensions also target EU pork and large-engine vehicles. French cognac exports, critical to China, face import hurdles.

China has retaliated against the European Union's recent tariffs on Chinese electric vehicles by imposing temporary anti-dumping measures on brandy imports from the bloc, particularly hitting French giants Hennessy and Remy Martin.

The move follows preliminary findings by China's commerce ministry indicating that EU brandy imports could significantly damage the local market. Meanwhile, France, whose trade ministry condemned this action as unjustified, plans to challenge the measures at the World Trade Organization alongside the European Commission.

As tensions escalate over these trade measures, China is also reviewing potential tariff hikes on EU pork and large-engine vehicle imports, which may impact German manufacturers. French brandy, a critical export to China, now faces steep security deposits, further complicating the trade landscape.

(With inputs from agencies.)