China Penalizes European Brandy Imports in Response to EU Tariffs
Escalating Trade Tensions Lead to China’s Brandy Tariffs
On October 11, China imposed temporary anti-dumping measures on brandy imports from the European Union, impacting major brands like Hennessy and Remy Martin. This decision follows the EU's vote for tariffs on Chinese electric vehicles, prompting a retaliatory response.
Details of the Anti-Dumping Measures
The Chinese Commerce Ministry stated that the preliminary investigation concluded that dumped EU brandy threatens domestic producers, leading to significant potential damage. Importers will now face security deposit rates between 34.8% and 39.0% of the import value. The situation appears to particularly target French brands, which previously accounted for 99% of China’s brandy imports.
- Hennessy shares dropped by 4%.
- Remy Cointreau experienced a 5% decline in its stock value.
- Other companies faced varying deposit requirements, with Martell’s getting the lowest rate at 30.6%.
Implications for Future Trade Relations
The retaliatory tariffs suggest deeper disputes may arise as China continues its investigation into EU pork imports and considers raising tariffs on large-engine vehicles. The future of China-EU relations may hinge on the outcomes of ongoing trade negotiations.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.