China Threatens Brandy Tariffs, European Spirits Makers Brace for Impact

In the world of international trade, it's not just about cars and steel. Sometimes, it's about the finer things in life, like brandy. And right now, there's a bit of a tiff brewing between China and the EU over this particular spirit.

Word on the street, or rather, from Yuyuan Tantian, a Chinese media account with links to state-owned CCTV, is that China might slap preliminary tariffs on brandy imported from the EU as early as August. This comes hot on the heels of the European Commission's decision to impose extra duties on Chinese electric cars from July.

Now, you might be wondering, why brandy? Well, it all started back in January when China kicked off an anti-dumping investigation into EU brandy. Many folks in the industry see this as a tit-for-tat move following the EU's probe into Chinese electric vehicles.

The news has left brandy makers in Europe, especially those in France, feeling a bit jittery. After all, China is the second largest market for Cognac, a type of brandy that's as French as the Eiffel Tower. In 2023, Cognac raked in a cool €335 billion in exports. So, any tariffs could seriously dent sales and leave a bitter taste in the mouths of Cognac businesses.

The Bureau National Interprofessional du Cognac (BNIC) and the Fédération des Exportateurs de Vins & Spiritueux de France (FEVS) have both expressed their concerns. They've even sent in their response to the Chinese Ministry of Commerce's questionnaires and are ready to defend their turf in Beijing.

As we wait for China's next move, one thing's for sure - this standoff is as unpredictable as the nose of a fine brandy. So, here's to hoping that the situation improves and we can all raise a glass to free trade soon.