Brandy Battles: China Hits EU Brands Amid EV Tariff Tensions

China has imposed temporary anti-dumping measures on EU brandy imports after the European Union approved tariffs on Chinese electric vehicles. Brands like Hennessy and Remy Martin face significant security deposits. The move targets France, major supplier of China's brandy, amidst ongoing trade tensions and tariff exchanges.

China has enacted temporary anti-dumping measures against European Union brandy imports, hitting major brands such as Hennessy and Remy Martin. This move follows the EU's decision to impose tariffs on Chinese electric vehicles, escalating trade tensions between the two regions.

The Chinese commerce ministry stated that preliminary investigations revealed that EU brandy imports threatened substantial damage to China's domestic brandy industry. Consequently, importers of EU brandy will now be required to pay security deposits ranging from 34.8% to 39% of the import value as of October 11.

The decision primarily targets France, which supplied 99% of China's brandy imports last year, valued at $1.7 billion. The punitive measures come in response to the EU's imposition of tariffs on China-made EVs. Affected companies are now faced with increased costs and ongoing trade negotiations.

(With inputs from agencies.)