China has decided to impose a maximum 34.9% anti-dumping tariff on European brandy. This is a retaliatory measure against the European Union's imposition of tariffs of up to 45.3% on Chinese electric vehicles last October.
On the 4th, China’s Ministry of Commerce said, "The State Council Tariff Commission has decided to impose anti-dumping tariffs on imported brandy produced in the EU starting July 5, following a proposal from the Ministry of Commerce." A high tariff of 27.7% to 34.9% will be applied to producers of spirits (brandy) packaged in 200L containers from distilled wine. The tariff application period is five years.
Exceptions will be made for corporations that promise not to sell products below a certain price, referred to as a 'minimum selling price.' Accordingly, major cognac producers from France, such as Louis Vuitton Moët Hennessy (LVMH)'s Hennessy, Rémy Cointreau, and Pernod Ricard, will be exempt from the anti-dumping tariffs.
A spokesperson for China’s Ministry of Commerce noted, "Accepting the price promises shows again China's sincerity in resolving trade friction through dialogue and negotiation." Olof Gyll, the EU trade spokesperson, said, "This measure is unfair and lacks basis as it does not comply with relevant international norms, and we will review countermeasures going forward."
Last October, the EU judged that low-cost Chinese electric vehicles, based on government subsidies, were disrupting the European market and imposed additional countervailing tariffs ranging from 7.8% to a maximum of 35.3% on Chinese electric vehicles. As total tariffs reached up to 45.3%, China strongly protested and initiated anti-dumping investigations into European brandy, dairy products, and pork.