China Slaps Anti-Dumping Measures on EU Brandy Imports Amid Tariff Tensions - Impact on Hennessy, Remy Martin, and More
In a bold move, China has imposed temporary anti-dumping measures on brandy imports from the European Union, affecting big players like Hennessy and Remy Martin. This comes after the EU voted for tariffs on Chinese-made electric vehicles, sparking a trade war between the two economic powerhouses.
The Chinese commerce ministry cited "substantial damage" to China's own brandy sector due to dumping of EU brandy. Importers will now have to put down security deposits ranging from 34.8% to 39.0% of the import value, making it more expensive to import brandy from the EU.
The punitive measures target France, which accounted for 99% of China's brandy imports last year. Brands like Hennessy and Remy Martin are among the hardest hit, with security deposit rates of 39.0% and 38.1%, respectively. This move has already caused stock prices to plummet for companies like Pernod Ricard, Remy Cointreau, and LVMH.
The EU's decision to impose tariffs on China-made EVs further escalates the trade tensions, with tariff rates ranging from 7.8% to 35.3%. The European Commission is open to negotiations, but the impact of these tariffs on both sides remains to be seen.
In conclusion, the trade war between China and the EU is heating up, affecting industries from brandy to electric vehicles. Investors and consumers should stay informed about these developments as they could have significant implications for their finances and everyday lives.