The trade tensions between the European Union (EU) and China have escalated, with significant divergences remaining in tariff negotiations over Chinese electric vehicles (EVs). The Chinese Ministry of Commerce stated that consultations have failed to yield acceptable solutions, while also warning the EU against separate pricing negotiations that could jeopardize the ongoing talks. In retaliation to the EU's decision to impose tariffs of up to 35% on Chinese EVs, China announced that importers of European brandy will now face new customs deposits, impacting French cognac producers significantly. As a result, many in the Cognac region fear that the trade dispute will jeopardize their industry, which has already suffered from inflation and poor harvests. French officials plan to challenge China’s measures at the World Trade Organization, asserting that they violate free trade principles, yet concerns remain that the cognac industry may be sacrificed for the sake of the larger automotive sector. The situation reflects the complex interdependencies in EU-China trade, particularly for regions reliant on both markets.