Trade Tensions Brewing in Cognac: A Double-Edged Dilemma

In Cognac, France, local brandy producers and MG Motor dealership feel the impact of EU-China trade tensions. EU's tariffs on Chinese-made EVs and China's retaliatory measures against French brandy bring economic uncertainty. France challenges China's moves, fearing the impact on its luxury sector.

In the picturesque grape-growing region of Cognac, France, the looming trade tensions between the European Union and China have cast a shadow over the local economy. Christophe Bouetard, who operates the MG Motor dealership in Cognac, is feeling the squeeze from both sides of the trade spat.

The European Union's impending 45% tariffs on Chinese-made electric vehicles threaten to dampen Bouetard's sales, which largely rely on these imports. Simultaneously, his customer base, heavily embedded in the local brandy industry, is grappling with China's retaliatory measures targeting French brandy. These actions, seen as responses to EU tariffs, have led to economic concerns in a region renowned for its eponymous spirit.

France, accused by Beijing of targeting Chinese EVs with tariffs, has found its luxury sector in the crossfire. Cognac exports to China, a significant revenue source, face a bleak future if these measures become permanent. As both industries brace for impact, the diplomatic pushback against China's measures continues, with France's trade officials seeking to restore competitive balance.

(With inputs from agencies.)