China has introduced new measures that will increase the cost of European cognac in its market, following the European Union’s decision to raise import tariffs on Chinese electric vehicles. This move could significantly impact leading cognac brands like Hennessy and Rémy Martin. Beijing claims that European cognac, predominantly French, is being sold at unfairly low prices in China, which it argues harms its domestic industry.
Starting from October 11, European cognac exporters will be required to pay a deposit ranging from 34.8% to 39% of the import value of the product. In addition, China’s Ministry of Commerce announced plans to investigate whether similar measures should be applied to pork imports from Europe.
In response, the European Commission stated it would contest the measures at the World Trade Organization (WTO). “We view these actions as unfounded and remain committed to defending European businesses against misuse of trade protection instruments,” the Commission stated.
