China raises tariffs on European brandy in response to EU’s EV duty hike

1 hr ago

Jack Aylmer Energy Correspondent

By Jack Aylmer (Energy Correspondent), Zachary Hill (Video Editor)

China has raised tariffs on European brandy imports as part of its response to the European Union’s new tariffs on Chinese electric vehicles (EVs). The move comes after the EU approved duties of up to 45% on Chinese EVs.

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The EU accuses Beijing of providing subsidies that artificially lower prices and create an unfair advantage for Chinese automakers over European brands.

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In retaliation, China has increased tariffs on European brandy by as much as 39%, a decision that could impact some EU liquor brands, particularly those based in France. Chinese officials said preliminary findings of an anti-dumping investigation into EU brandy imports had determined that they “substantially damaged or threatened” China’s own domestic sector.

“I find these measures incomprehensible. There is no justification for them,” French Junior Trade Minister Sophie Primas responded in a statement. “We are very disappointed by this announcement, which goes against the commitment made by President Xi during his visit to France.”

China is the second-largest importer of brandy from the European Union, representing a market for the alcohol valued at over $1.5 billion. France, which backed the EU’s tariff increase on Chinese EVs, is expected to bear the brunt of China’s responding duty hike, as it accounted for 99.8% of the EU’s brandy exports to China last year.

“This announcement clearly shows that China is determined to tax us in response to European decisions on Chinese electric vehicles,” the Bureau National Interprofessionnel du Cognac, a French industry group, said in a statement.

The Chinese government’s response may not stop at brandy. A spokesperson from China’s Ministry of Commerce confirmed that officials are also considering increasing tariffs on European large-engine car imports, signaling further potential measures in the escalating trade tensions.

Tags: Alcohol, China, Climate Change, Electric vehicles, Electricity, European Union, EV, People’s Republic of China, Tariff

Jack Aylmer

ELECTRIC VEHICLES ARE NOW INFLUENCING BRANDY PRICES IN CHINA.

IT’S ALL PART OF BEIJING’S TRADE RETALIATION PLAN-

AFTER THE EUROPEAN UNION VOTED TO APPROVE TARIFFS OF UP TO 45 PERCENT ON CHINESE EVS LAST WEEK.

THE E-U ASSERTS THE CCP’S SUBSIDIES MADE THEIR ELECTRIC VEHICLES ARTIFICIALLY CHEAP-

GIVING THEM AN UNFAIR ADVANTAGE OVER DOMESTIC BRANDS.

CHINA RESPONDING WITH A DUTY INCREASE OF THEIR OWN-

RAISING THE RATE ON EUROPEAN BRANDY IMPORTS AS HIGH AS 39 PERCENT.

IT’S A MOVE THAT HAS THE POTENTIAL TO HURT THE MARGINS OF SOME LIQUOR BRANDS BASED IN THE EU-

WITH CHINA BEING THE BLOC’S SECOND LARGEST IMPORTER OF BRANDY-

MAKING THEM A MORE THAN ONE AND HALF BILLION DOLLAR MARKET FOR THIS TYPE OF ALCOHOL.

FRANCE- WHICH HAS SUPPORTED HIGHER DUTIES ON CHINESE EVS- WILL TAKE THE BIGGEST HIT FROM THE CHINESE TARIFF-HIKES-

AS THE COUNTRY ACCOUNTED FOR 99.8 PERCENT OF ALL EU BRANDY EXPORTS TO CHINA LAST YEAR.

BEIJING ALSO MIGHT NOT STOP AT BRANDY IN THEIR EFFORT TO HIT BACK AT EUROPE’S ECONOMY.

A CHINESE COMMERCE MINISTRY SPOKESPERSON CONFIRMING TO STATE MEDIA OUTLETS THAT GOVERNMENT OFFICIALS WERE LOOKING AT RAISING TARIFFS ON EUROPEAN LARGE-ENGINE CAR IMPORTS AS WELL.

TO GET MORE ON THIS DEVELOPING TRADE BATTLE OVER ELECTRIC VEHICLES BETWEEN CHINA AND THE EU, DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME – JACK AYLMER.