China Slaps Levies On Cognac In Retaliation For France’s EV Tariffs

China has enacted temporary anti-dumping measures on European brandies, forcing importers to pay up to a 40% deposit to bring their spirits into the country. The move is seen as retaliation for Europe, and particularly France, issuing tariffs on Chinese-made electric vehicles. France’s trade ministry has pledged to take China to the World Trade Organization, calling the anti-dumping measures violations of free trade. French brandy is a nearly $2 billion market in China. The European Commission plans to challenge the move at the WTO.

Since China announced the measures, Cognac brands and their parent companies have taken a hit: Pernod Ricard (Martell) saw shares drop 4.2%, LVMH (Hennessy) was down 4.9%, and Rémy Cointreau (Rémy Martin) dipped 8.7%, all as of early this morning. Beyond the current measures taken against European brandy, China has threatened to enact anti-dumping measures on European pork products and increase tariffs on bigger cars, a move seen as a potential shot at Germany, which exported more than $1 billion of large engine vehicles to China last year.—Shane English

Tagged : Cognac, LVMH, Pernod Ricard, Remy Cointreau

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