China Halts Tariffs on EU Brandy Amid Trade Talks

China has decided not to impose provisional tariffs on brandy imported from the EU, despite finding it had been sold below market prices. This move allows some breathing room in tense trade negotiations. The decision comes as the EU and China navigate tariffs on electric vehicles and other goods.

China announced on Thursday it will not impose provisional tariffs on brandy imported from the European Union despite concluding that it had been sold below market value. This decision offers both parties some relief amid ongoing, tense trade negotiations.

According to China's commerce ministry, European distillers have been selling brandy at a dumping margin between 30.6% and 39%, damaging China's domestic industry. However, the ministry has decided not to implement provisional anti-dumping measures at this time, leaving the door open for potential future actions.

This move comes as China lobbies EU member states to reject additional duties on Chinese-made electric vehicles. Barclays analyst Laurence Whyatt suggests this could be a negotiation tactic, as Beijing seeks to influence EU decisions. However, an EU Commission spokesperson stated the investigations into brandy and electric vehicles are separate tracks and won't influence each other.

(With inputs from agencies.)