China strikes back: Brandy tariffs in response to EU measures

Last week, the EU decided to impose tariffs on Chinese electric vehicles. In response, China has taken an unexpected turn by targeting brandy imports. The Chinese Ministry of Commerce announced it would impose temporary measures on these imports, a decision that would primarily impact France.

Earlier in October, European Union member states agreed to introduce tariffs on Chinese electric vehicles. Beijing is the largest producer of electric vehicles in the world. In 2023, the global export of these vehicles from China increased by 70%, reaching a value of $34.1 billion. The EU remains the largest recipient of these exports.

Germany, Hungary, Malta, Slovenia, and Slovakia were among the countries opposing the tariffs. However, France and Poland supported them, with France actively lobbying for their imposition.

Charlie Zhang, Vice President of Chery Automobile, expressed that halting the import of electric vehicles from China, which he views as the intent behind potential punitive tariffs, won't lead to an immediate improvement for European manufacturers. He emphasized his belief in the strength of collaboration.

China has now issued its response. Starting Friday, October 11, importers of brandy from the EU will have to pay "security deposits to the customs authorities."

"The move mainly targets French luxury cognac brands," Politico says. France accounts for 99% of the brandy exports from EU countries. As the Deputy Director of the Center for Eastern Studies reported on the X platform, China had previously threatened to impose tariffs on brandy.

Politico notes that farmers are apprehensive about China's similar move, especially regarding two sectors: pork and dairy. The brandy sector has repeatedly warned against becoming a hostage to geopolitical tensions between Beijing and Brussels.