Reuters reports that China has decided not to impose new tariffs of up to 35% on EU brandy imports, including cognac, provided the products are sold at agreed minimum prices. The move spares major producers such as Pernod Ricard and Remy Cointreau from added costs that could have further strained their business.
China’s Ministry of Commerce issued its final ruling following a review of European brandy imports primarily French cognac first introduced to the market last year. The decision comes as tensions between Beijing and Brussels continue over tariffs imposed on Chinese-made electric vehicles amid allegations of unfair subsidies.
French cognac makers had complained of becoming scapegoats in this broader trade conflict. Temporary anti-dumping duties of up to 39% were introduced by China last October on EU brandy imports, including well-known labels such as Hennessy and Remy Martin, after the EU levied tariffs on Chinese EVs. Monthly cognac exports to China one of the most valuable markets for spirits globally fell by as much as 70%, according to the National Interprofessional Bureau of Cognac (BNIC).
Last week, Reuters reported that French producers reached a preliminary agreement on minimum import prices for the Chinese market. However, China indicated that final approval would hinge on progress in EU China talks over automotive tariffs.
The news offers relief for brandy producers, who have also faced declining sales in the United States—the largest cognac market by volume due to inflation and economic uncertainty.
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