China Temporarily Halts Tariffs on EU Brandy Amid Trade Tensions

China decides not to impose immediate tariffs on EU brandy, despite claims of it being sold at below market prices. The decision provides relief amidst tense trade negotiations, though future actions remain possible. European stakeholders express their concerns and urge continued diplomatic efforts to resolve the issue.

China announced on Thursday that it will not enforce provisional tariffs on European Union brandy imports, despite concluding that the alcoholic beverages were being sold below market prices. This decision eases tensions in ongoing trade discussions, though the potential for future tariffs remains.

The Chinese Ministry of Commerce revealed that European distillers were selling brandy in China at margins between 30.6% and 39%, impacting its domestic industry. Reactions to this announcement varied, with French Cognac Association expressing fears of severe export impacts if tariffs were implemented.

European officials and industry representatives emphasized their cooperation with Chinese authorities and called for diplomatic negotiations to prevent tariff imposition. Analysts noted the decision as a possible negotiation tactic, highlighting the complex dynamics between the EU and China.

(With inputs from agencies.)