China imposes 39% tariffs on EU brandy, mulls further retaliatory measures
China announced on Tuesday retaliatory measures against the European Union, imposing tariffs of up to 39 per cent on brandy imports effective October 11. Additionally, China is considering implementing even higher tariffs on European large-engine gasoline vehicles. These actions are in response to the EU’s recent decision to impose tariffs on Chinese electric vehicles (EVs).
The Chinese Ministry of Commerce stated that the tariffs are intended to protect the interests of Chinese companies amid escalating trade tensions between the two economic superpowers.
The EU’s decision to impose tariffs of up to 45 per cent on Chinese EV imports has sparked a trade dispute. China’s new tariffs are seen as a direct response to the EU’s actions and aim to pressure Brussels to renegotiate a more favourable agreement.
European companies, particularly in the automotive and spirits sectors, have faced negative market reactions following the announcement. Shares of BMW, Mercedes-Benz, and Remy Cointreau have experienced declines.
The new tariffs will primarily impact French brandy imports, targeting producers like Remy Cointreau and Pernod Ricard, which have significant market presence in China.
The European Commission is expected to release the final results of its investigation into Chinese EV subsidies later this month. As tensions escalate, both China and the EU appear determined to defend their respective industries, with Chinese state media previously suggesting potential retaliatory measures against EU products.
Attribution: Bloomberg
Subediting: Y.Yasser
