China retaliates against EU brandy following electric car sanctions
Beijing has announced tariffs on brandy imports from the EU after Brussels slapped extra duties on Chinese-made electric cars Read Full Article at RT.com
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**Beijing’s Duties Follow the Bloc’s Tariff Hike Amid Warnings of a ‘Trade War’**
Beijing has introduced provisional tariffs on brandy imported from the European Union, just days after EU countries supported duties on electric vehicles produced in China.
The Chinese Ministry of Commerce announced that the temporary anti-dumping levies on EU liquors will vary between 30.6% and 39.0%, taking effect on October 11. The ministry did not specify the duration of these duties, which will be required as a deposit submitted to the Chinese customs agency.
Since January, China’s Commerce Ministry has been conducting an anti-dumping investigation concerning the importation of EU brandy. In August, it declared that preliminary findings indicated European producers were selling their products in China at prices below market value, posing a threat of “substantial damage” to local manufacturers.
There have also been anti-dumping investigations into pork and dairy products imported from the EU. These actions coincide with Brussels initiating its own investigation into battery electric vehicles made in China last year, a development many have characterized as an intensifying ‘trade war’ between Beijing and Brussels.
According to Reuters, French brands represented 99% of China’s brandy imports last year, amounting to $1.7 billion. Importers of Hennessy and Remy Martin will be required to pay security deposits of 39.0% and 38.1%, respectively. France was among the ten EU member states that voted in favor of imposing levies on Chinese-made battery electric vehicles last week.
The high tariffs imposed by China on EU brandy could result in French companies being left with significant quantities of cognac that may be difficult to market elsewhere, as noted by Reuters in May.
Following the announcement on Tuesday, stocks of European distilleries declined, with shares of Remy Cointreau, the producer of Remy Martin cognac, dropping by as much as 7.7% in early trading, according to the Wall Street Journal.
The European Commission revealed last week that the decision to impose tariffs of up to 35.3% on Chinese-made battery electric vehicles had garnered the necessary backing from EU member states. These new levies, slated to take effect late October, will be in addition to the standard 10% import duty that the EU already imposes on cars. Brussels contends that the tariffs are essential to safeguard European automakers from unfair competition, asserting that Chinese firms benefit from state subsidies.
Germany, a key player in car manufacturing, along with Hungary, has voiced concerns over the tariffs, cautioning against “a trade war” and advocating for a negotiated resolution.
Ramin Sohrabi for TROIB News
Beijing has introduced provisional tariffs on brandy imported from the European Union, just days after EU countries supported duties on electric vehicles produced in China.
The Chinese Ministry of Commerce announced that the temporary anti-dumping levies on EU liquors will vary between 30.6% and 39.0%, taking effect on October 11. The ministry did not specify the duration of these duties, which will be required as a deposit submitted to the Chinese customs agency.
Since January, China’s Commerce Ministry has been conducting an anti-dumping investigation concerning the importation of EU brandy. In August, it declared that preliminary findings indicated European producers were selling their products in China at prices below market value, posing a threat of “substantial damage” to local manufacturers.
There have also been anti-dumping investigations into pork and dairy products imported from the EU. These actions coincide with Brussels initiating its own investigation into battery electric vehicles made in China last year, a development many have characterized as an intensifying ‘trade war’ between Beijing and Brussels.
According to Reuters, French brands represented 99% of China’s brandy imports last year, amounting to $1.7 billion. Importers of Hennessy and Remy Martin will be required to pay security deposits of 39.0% and 38.1%, respectively. France was among the ten EU member states that voted in favor of imposing levies on Chinese-made battery electric vehicles last week.
The high tariffs imposed by China on EU brandy could result in French companies being left with significant quantities of cognac that may be difficult to market elsewhere, as noted by Reuters in May.
Following the announcement on Tuesday, stocks of European distilleries declined, with shares of Remy Cointreau, the producer of Remy Martin cognac, dropping by as much as 7.7% in early trading, according to the Wall Street Journal.
The European Commission revealed last week that the decision to impose tariffs of up to 35.3% on Chinese-made battery electric vehicles had garnered the necessary backing from EU member states. These new levies, slated to take effect late October, will be in addition to the standard 10% import duty that the EU already imposes on cars. Brussels contends that the tariffs are essential to safeguard European automakers from unfair competition, asserting that Chinese firms benefit from state subsidies.
Germany, a key player in car manufacturing, along with Hungary, has voiced concerns over the tariffs, cautioning against “a trade war” and advocating for a negotiated resolution.
Ramin Sohrabi for TROIB News
