China hits Europe’s brandy exports with duties but adds exemptions

Published connected 04/07/2025 - 12:15 GMT+2•Updated 18:12

French portion manufacturers are bracing for losses arsenic China said it would spot a dense waste and acquisition work connected brandy exports from nan European Union, perchance taking a gulp retired of their income successful nan coming years.

A tariff complaint connected EU brandy could spell up to 34.9% for 5 years from 5 July.

The work was announced aft China’s Ministry of Commerce concluded an investigation into European brandy imports, determining that nan products threatened its nationalist brandy industry. 

Cognac, which is heavy exported from France, was a merchandise of concern, though awesome cognac makers for illustration Pernod Ricard and Remy Cointreau will now beryllium exempted.

China’s investigation ruled that nan EU had engaged successful tone “dumping”, a believe wherever overseas equipment are sold importantly beneath their normal price. The corrective tariff will beryllium charged successful summation to a normal customs duty.  

Belgium-based waste and acquisition group spiritsEUROPE, representing EU producers of tone drinks, said successful a connection that it “regrets today’s determination by nan Chinese Ministry of Commerce to enforce last anti-dumping duties averaging 32.2% connected EU wine-based spirits, marc-based spirits, and brandies arsenic of 5 July,” adding that “the measures will still airs a important obstruction to morganatic trade”. 

The waste and acquisition group besides said that nan EU spirits assemblage provided “substantial grounds complete nan past 18 months, intelligibly demonstrating nan absence of immoderate dumping practices connected nan Chinese market”. 

“The determination originates from a spat astir unfair title and protectionism and it is bad news for European drinks companies who bask large income to Asia,” said Dan Coatsworth, finance expert astatine AJ Bell. “That explains why shares successful Rémy Cointreau and Pernod Ricard were anemic connected nan news arsenic drinkers successful China mightiness deliberation doubly astir buying their products if nan value is now overmuch higher.”

The news pulled down French spirits makers’ stock prices, pinch Pernod Ricard slumping 1%, Remy Cointreau down 1.75%, and luxury elephantine LVMH, nan genitor institution of Hennessy and Rémy Martin, losing 2.1% astir 11 CEST successful Europe. 

Closer to midday, stock value losses moderated aft news collapsed that China spared awesome cognac producers from nan caller duties, provided they waste astatine a minimum price.

Trade group spiritsEUROPE welcomed nan partial relief, saying that “to safeguard their operations and support a unchangeable beingness successful nan Chinese market, respective affected companies person entered into value undertakings (raising export prices) pinch MOFCOM (China’s Ministry of Commerce)”, adding that these will switch anti-dumping duties for these companies.

The group urged Beijing to grow this action to each European companies affected.

SpiritsEUROPE Director General Hervé Dumesny said “Beyond its nonstop effect connected our sector, this determination risks fuelling waste and acquisition tensions astatine a clip erstwhile communal practice is much important than ever.”

The determination connected brandy comes aft nan EU decided to enforce tariffs arsenic precocious arsenic 45% connected Chinese-made electrical vehicles past year.