China aims at EU brandy following electric vehicle sanctions
Date
10/16/2024 5:25:57 AM
(MENAFN) In a notable escalation of trade tensions, China has announced provisional tariffs on brandy imports from the European Union, just days after European Union member states supported imposing duties on Chinese-made electric vehicles (EVs). The Chinese Ministry of Commerce stated that the temporary anti-dumping tariffs will range from 30.6 percent to 39.0 percent, effective from October 11. However, the ministry did not clarify the duration for which these duties will be enforced.
The move follows an anti-dumping investigation launched by China in January regarding European Union brandy imports. Preliminary findings disclosed in August indicated that European producers were selling brandy at below-market rates, thereby posing a threat of "substantial damage" to domestic Chinese producers. This investigation aligns with similar probes into imported pork and dairy products from the European Union, marking a broader strategy of scrutiny against European goods.
The backdrop of these tariffs is a reciprocal response to the European Union 's own investigation into Chinese battery electric vehicles, initiated last year. This has been widely interpreted as an intensifying trade war between Beijing and Brussels.
French brands dominate the Chinese brandy market, accounting for 99 percent of the country's imports last year, which totaled approximately USD1.7 billion. Notably, importers of major brands like Hennessy and Remy Martin will face significant security deposits of 39.0 percent and 38.1 percent, respectively, as part of these new tariffs. France was also among the ten European Union member states that supported the levies on Chinese electric vehicles last week, suggesting a tit-for-tat dynamic in the escalating trade dispute.
The imposition of high tariffs on European Union brandy is expected to create substantial challenges for French firms, potentially leaving them with large stocks of cognac that may be difficult to sell in alternative markets. As trade relations between China and the European Union continue to fray, both sides appear to be preparing for a protracted economic confrontation.
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