Chinese tariffs hit cognac industry with 50% drop in shipments

The cognac industry is facing significant challenges due to new Chinese tariffs. Since the fall, China has imposed anti-dumping taxes on European brandies, including cognac, which is a major export. This has resulted in a monthly loss of 50 million euros for the industry. The tariffs were introduced on October 11 as a response to the European Union's similar measures on Chinese electric vehicles. As a result, European brandy exports now require a bank guarantee from Chinese customs. These punitive measures have led to a 50% drop in monthly shipments, according to a joint statement from the cognac and armagnac sectors.

Florent Morillon, president of the National Interprofessional Bureau of Cognac (BNIC), expressed concerns about the impact on employment and businesses. The industry, which supports over 70,000 jobs, is now struggling due to these political decisions. Industry leaders plan to use the upcoming Agriculture Fair in Paris to highlight their urgent situation to political representatives. They are urging the Prime Minister to visit China, as promised by the President, to address this issue politically.

Despite direct discussions with the Elysée and various ministries, no solution has emerged. A leading cognac producer expressed frustration, feeling the industry is being sacrificed, as there is no market that can replace China, which is the largest in value and second in volume after the United States. The potential return of Donald Trump to the White House, known for his aggressive trade policies, adds further uncertainty for cognac and armagnac producers. Florent Morillon stated that the industry is closely monitoring the situation, hoping to avoid further complications.