China Imposes Five-Year Tariffs on EU Brandy

China will impose anti-dumping duties of up to 34.9% on European Union brandy imports for five years starting July 5, 2025, after concluding that EU brandy was being sold below fair market value to the detriment of China's domestic industry. Major French cognac producers such as Pernod Ricard, Rémy Cointreau, and Hennessy will be exempt from these tariffs if they adhere to an agreed minimum price, a provision welcomed as partial relief by the EU spirits association. The move is widely seen as retaliation for the EU’s tariffs on Chinese electric vehicles, and has faced criticism from European authorities and industry groups who warn of escalating trade tensions. The anti-dumping duties come amid broader economic and diplomatic disputes between China and the EU. China’s Ministry of Commerce stated its willingness to resolve disagreements through dialogue by accepting price undertakings from some EU exporters. The announcement has already affected the share prices of leading French spirits companies and could reshape market dynamics for European producers in China.