China is expected to announce provisionary punitive tariffs on European brandy as early as August, marking the first time state media has provided a timeline for the decision, after launching an anti-dumping probe into EU-produced brandy five months ago.
The news came on the heels of EU’s announcement last Wednesday of imposing up to 38.1% tariffs on China-made electric cars.
The following day, according to an article posted by Yuyuan Tantian (玉渊谭天), a media account known for its political commentary and ties to state-owned CCTV, it cited experts familar with the brandy investigation by saying that “provisionary tariffs on brandy will be announced before the end of August.”
It went on to say that China will monitor the situation closely and take “all necessary measures” to safeguard its interests. This statement came after the European Commission’s announcement last Wednesday to impose up to 38.1% tariffs on imported Chinese electric vehicles starting in July.
It’s worthy to note this is the same state media outlet that quoted sources advocating slapping tariffs on EU wines amid ongoing trade disputes with the European trading bloc on EV, solar panels, railway and security sectors, as we first reported.
Last year, China imported US$1.75 billion worth of brandy, accounting for over 60% of the country’s total imported spirits value. Almost all European brandy exported to China is made in France – 99.28% to be exact in 2023 – with leading drinks giants including Pernod Ricard, prdoucer of Martell, Hennessy maker LVMH and Remy Cointreau being the biggest exporters to China.
The EU’s decision last week on Chinese electric vehicles has raised concerns among brandy and cognac producers. They have expressed their “deepest concern” about the potential consequences of China’s anti-dumping investigation on European brandy.
“We take note of the European decision and once again reiterate our deepest concern regarding the consequences for the anti-dumping investigation launched by China on European brandy,” said Florent Morillon, president of the Bureau National Interprofessional du Cognac.
