A new trade war is unfolding between the European Union (EU) and China, with luxury brands like LVMH, Pernod Ricard, and Remy Cointreau at the center of the storm. The dispute, sparked by EU tariffs on Chinese electric vehicles (EVs), has escalated into China imposing heavy tariffs on European brandy, severely impacting French cognac exports. This tit-for-tat retaliation threatens to harm some of France’s most prestigious luxury brands, which rely heavily on the Chinese market.
EU Imposes Tariffs on Chinese EVs, China Strikes Back at Brandy In a move to protect the domestic electric vehicle market, the EU introduced tariffs of up to 45.3% on Chinese-made electric vehicles, arguing that China’s EVs are being unfairly subsidized. This action has created a ripple effect, with China retaliating by targeting European brandy imports, including those from top French brands like Moët Hennessy, the luxury goods conglomerate behind LVMH.
The new tariffs, which came into effect on October 30, mark a significant escalation in the EU-China trade tensions. China accused European brandy makers of “dumping” their products at unfairly low prices, undermining local producers. As a result, China imposed a temporary deposit of up to 39% on brandy imports from the EU, threatening to make it a permanent tariff if the situation persists.
French Brandy Makers Feel the Heat of Retaliatory Tariffs The immediate impact of China’s tariff measures was felt on the stock market. Shares of major.
