China imposes steep anti-dumping tariffs on EU brandy exports

China has taken significant steps in international trade relations by imposing anti-dumping duties on European brandy imports, specifically targeting cognac from France. Announced on Friday, July 4, 2025, these tariffs range from 27.7% to 34.9% and will remain effective for five years without being applied retroactively. The decision follows a preliminary ruling by China's Commerce Ministry that determined dumping had occurred, adversely impacting the domestic brandy industry, which claims to face substantial damage from the influx of imported products at artificially low prices. The trade tensions between China and the European Union have escalated since last summer, when the EU initiated an investigation into China's electric vehicle subsidies, deeming them harmful to European competitors. China perceived this move as a provocation and, in response, launched probes into European agricultural products, including pork, dairy, and specifically brandy. This tit-for-tat approach has characterized their relationship and culminated in the current measures against brandy exports. Chinese authorities noted that a few major French cognac producers, including Jas Hennessy, have reached price commitments to avoid the tariffs, agreeing to sell their products at or above a set minimum price. However, the imposition of these tariffs symbolizes deeper economic frictions between China and the EU, particularly amid China's effort to strengthen ties with the bloc as a counterbalance to the United States. China's commerce ministry made it clear that while it hopes to resolve trade disputes through dialogue, consistent tensions remain over various economic matters, including a significant trade imbalance between the two parties. Upcoming diplomatic meetings, including a summit to mark the 50th anniversary of diplomatic relations, are anticipated to address these challenges as the involved nations seek to navigate their complex and often contentious relationship.