French cognac producers are expressing deep concern following the European Commission’s decision to impose tariffs on imported Chinese electric vehicles. This move has heightened worries among French cognac makers, particularly in light of an ongoing Chinese probe into European cognac imports.
The European Commission announced its intention to levy additional duties, ranging up to 38.1%, on imported Chinese electric cars starting from July. This decision has raised concerns about potential retaliation from Beijing, which has labeled the move protectionist.
China initiated an anti-dumping investigation on brandy imported from the European Union earlier this year, largely seen as a response to escalating trade tensions between China and Brussels. Given that nearly all European brandy exported to China originates from France, companies like Pernod Ricard and Remy Cointreau stand to be significantly impacted.
Florent Morillon, president of the Bureau National Interprofessional du Cognac, voiced the industry’s apprehension, emphasizing the potential ramifications of China’s anti-dumping investigation on European brandy.
French President Emmanuel Macron recently acknowledged China’s “open attitude” toward provisional measures on cognac during a state visit to Paris, indicating ongoing diplomatic efforts to address these trade challenges.
The situation underscores the complex interplay between international trade dynamics and the global market for luxury goods, with French cognac producers closely monitoring developments for potential impacts on their business operations.