Bottled Diplomacy: French Cognac Gains Temporary Reprieve in China Tariff Delay

China delays its investigation conclusion, offering French cognac producers temporary relief from import tariffs amidst trade tensions, providing time for further negotiations to protect this key export amidst strained international relations.

Amidst rising trade tensions, China has extended its investigation into French-made cognac and armagnac imports, delaying a decision on hefty tariffs. This development offers temporary respite to the struggling French cognac industry, as confirmed by France's Foreign Minister during his visit to China.

The delay does not remove existing tariffs, but it provides the embattled cognac producers a crucial window to intensify their lobbying efforts. Shares in major French drinks companies like Remy Cointreau and Pernod Ricard have reacted positively, seeing a 3% rise in trading.

The initial tariffs were introduced following the European Union's decision to impose charges on Chinese electric vehicles. These measures have hit French cognac exports hard, with China being a critical market alongside the United States. The BNIC, representing the industry, awaits further government insights into Barrot's statements while monitoring ongoing trade dialogues.

(With inputs from agencies.)