China Threatens Tariffs on French Wine After Paris Proposes New EU Levies on Chinese Imports

China has warned that it may launch investigations into French wines or impose reciprocal tariffs on European Union products if France continues to push for new EU tariffs on Chinese goods. The warning came from Yuyuan Tantian, a social media account affiliated with Chinese state broadcaster CCTV, following the release of a French government strategy report that urged the EU to consider a 30% tariff on all Chinese imports or a 30% depreciation of the euro against the renminbi. The report, published Monday, cited concerns over a surge in low-cost Chinese imports.

Yuyuan Tantian stated that the French proposal targets only Chinese products and violates World Trade Organization rules. The post described the recommendations as “tantamount to declaring war on China in trade.” The warning had an immediate impact on financial markets. Shares in French cognac producer Remy Cointreau fell as much as 2.2%, while spirits group Pernod Ricard dropped 1% before both companies recovered some of their losses.

French government spokesperson Maud Bregeon responded to the comments by clarifying that the proposal has not been adopted as official government policy. “Today, as you can see, the proposal has not been taken up by the government, which does not mean that it is unfounded,” Bregeon told journalists. The French trade and finance ministries did not immediately respond to requests for comment.

Last year, China spared major French cognac producers such as Pernod Ricard, LVMH, and Remy Cointreau from heavy duties after an anti-dumping investigation into EU brandy imports. That investigation lasted more than a year and was widely seen as retaliation for EU tariffs on Chinese-made electric vehicles. France had voted in favor of those tariffs.

Beijing has repeatedly said it is open to dialogue with France and the EU to resolve trade disputes. The Yuyuan Tantian post reiterated this position but also emphasized that China is prepared to respond to any challenges. “China has always kept its door open for communication, but is also well-prepared to meet all challenges,” the post said.

The situation remains tense as both sides weigh their next moves. The French strategy report’s recommendations have not yet become official policy, but the strong reaction from China highlights the sensitivity of trade relations between Beijing and Paris. The possibility of new tariffs or investigations could have significant consequences for French wine and spirits producers, who rely heavily on exports to China.