China imposes anti-dumping duties of up to 34.9 per cent on European brandy as trade tensions rise

China has imposed anti-dumping tariffs of up to 34.9 per cent on European brandy, mainly targeting French cognac, amid escalating trade tensions. The move follows EU's probe into Chinese EVs and adds strain ahead of the upcoming China-EU summit

Beijing: China on Friday imposed anti-dumping duties on European brandy, most notably cognac produced in France, as trade tensions between Beijing and United States allies continue to rise.

The tariffs, effective on Saturday, will range from 27.7 per cent to 34.9 per cent, China’s Commerce Ministry said. They are to be in place for five years and will not be applied retroactively.

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The announcement came during a European visit by Chinese Foreign Minister Wang Yi aimed at ironing out trade differences. Wang was set to visit Paris after stops in Brussels and Berlin.

The anti-dumping duties are the result of a probe China launched last year into European cognac after the European Union undertook a probe into Chinese electric vehicles subsidies.

“The investigative authority finally ruled that the dumping of related imported brandy from the EU has existed,” read a statement by China’s Commerce Ministry. “The domestic brandy industry faces a material threat of damage, and there is a causal relationship between the dumping and the substantial damage threat.”

Besides cognac, China has also launched investigations into European pork and dairy products. The brandy probe was the first and targeted mainly French makers of cognac and similar spirits such as Armagnac.

China initially announced provisional tariffs of 30.6 per cent to 39 per cent on French cognac producer Remy Martin and other European brandies after a majority of EU countries approved duties on electric vehicles made in China. Wang was set to meet his French counterpart, Jean-Noel Barrot, later Friday in Paris. His European tour comes ahead of a China-EU summit to be focused on trade later this month in Beijing.