Trade Tensions Delay: French Cognac's Respite from Chinese Tariffs

China's investigation into French cognac has been extended, delaying hefty tariffs. The French cognac industry, already troubled by US and EU trade tensions, finds relief as China's postponement prevents sudden tariff implementation. Cognac relies heavily on China and the US as vital export markets.

China's decision to extend its investigation into French cognac imports provides temporary relief to the industry, facing potential tariff hikes. Initially planned for completion sooner, the probe's timeline has stretched, averting an immediate imposition of tariffs.

The tariffs are in response to the EU's move against Chinese electric vehicles, significantly impacting French cognac sales despite its robust industry presence in China and the US.

French Foreign Minister Jean-Noel Barrot, on a diplomatic mission, disclosed the delay, noting the added strain on the cognac industry from ongoing US trade disputes.

(With inputs from agencies.)