Shares in brandy firms dropped after the announcement.
China introduced new restrictions on European brandy simply days after EU nations authorised steep tariffs on Chinese language-made electrical autos.
China’s commerce ministry stated brandy imports threaten “substantial harm” to its personal producers. Importers should pay “safety deposits” on European brandy.
It additionally stated it was contemplating a hike in tariffs on imports of large-engine autos, which might hit German producers hardest, and pork and dairy merchandise.
French Commerce Minister Sophie Primas stated the brandy tax “appears to be a retaliatory measure” after the European Union determination to boost tariffs on Chinese language electrical automobiles.
She stated that form of retaliation can be “unacceptable”, and a “whole contradiction” of worldwide commerce guidelines, including that France would work with the European Union to take motion on the WTO.
France accounts for 99% of brandy exported to China, and French cognac foyer group BNIC stated the transfer can be “catastrophic” for the trade.
“The French authorities can not abandon us and go away us alone to cope with Chinese language retaliation that has nothing to do with us,” BNIC stated, including that the taxes “should be suspended earlier than it is too late”.
