China Halts Tariffs on EU Brandy Amidst Ongoing Trade Negotiations

China announced it will not impose provisional tariffs on European Union-imported brandy, despite finding it sold below market prices. This decision offers relief in tension-filled trade talks. Beijing's commerce ministry revealed that European distillers sold brandy at lower margins, affecting China's domestic market. Pernod Ricard and Remy Cointreau shares rose following the news.

Beijing announced on Thursday that it will not impose provisional tariffs on brandy imported from the European Union, despite evidence of it being sold below market prices. This decision eases tensions in current trade discussions between China and the EU.

The Chinese commerce ministry stated that European distillers have been selling brandy at margins between 30.6% and 39.0%, which has impacted the domestic market. This move could be China's strategy to influence the EU's impending vote on imposing additional duties on Chinese-made electric vehicles.

Shares in French spirit companies rose after the announcement, with Pernod Ricard up 4.4% and Remy Cointreau rising 7.7%. Pernod Ricard's CEO, Alexandre Ricard, remained cautious, noting that the tariff decision is only temporary. The announcement follows Beijing's anti-dumping probe launched in January, which brandy makers believe is part of a broader trade dispute.

(With inputs from agencies.)