Key Facts
• July 4, 2025: China announces tariffs on EU brandy imports.
• Tariffs of up to 34.9% will apply from July 5, 2025, for five years.
• Brands like Martell and Rémy Martin may avoid tariffs if price commitments are met.
• Investigation focused on anti-dumping practices, particularly French cognac.
• French cognac makers claim tariffs are linked to EU-China trade tensions over EVs.
• Temporary agreement on minimum import prices reached, but final deal depends on EV tariff talks.
Summary
China’s Ministry of Commerce announced on July 4, 2025, that it will impose tariffs of up to 34.9% on European Union (EU) brandy imports starting July 5 for a five-year period. The decision follows an anti-dumping investigation, primarily targeting French cognac. Major brands like Martell and Rémy Martin may avoid these tariffs if they adhere to minimum price commitments. French cognac producers argue that the tariffs are a consequence of broader trade disputes between the EU and China, particularly over tariffs on Chinese electric vehicles (EVs). While a temporary agreement on minimum import prices has been reached, China insists that progress in EV tariff negotiations is necessary for a final resolution. This development highlights the ongoing complexities in EU-China trade relations.
