French cognac makers have been hit with “catastrophic” tariffs in the latest escalation of a trade spat between Beijing and Brussels.
The world’s second-largest economy will make importers of EU brandy pay a “corresponding guarantee” to Chinese customs from Friday, according to the commerce ministry.
Hennessy, a French cognac producer, faces tariffs of 39pc, according to China’s commerce ministry, while Remy Martin faces a levy of 38.1pc and Martell 30.6pc.
The tit-for-tat measure comes after Brussels launched a probe into Chinese electric vehicles, solar panels and wind turbines. Officials are concerned that Beijing is unfairly subsidising these industries, leaving EU rivals struggling to compete. The EU last week imposed extra tariffs of up to 35.3pc on Chinese EVs.
The French government vowed to take action against China at the World Trade Organisation, branding the measure “unacceptable” and “in total contradiction” with international rules.
The Bureau National Interprofessionnel du Cognac, the trade body representing French brandy makers, warned on Tuesday that the new Chinese duties would have “catastrophic” consequences.
It comes after the trade body on Friday had said: “A European vote has just confirmed the application of taxes on Chinese electric vehicles, reinforcing the imminent threat of surtax on cognac exports to China.
“The French authorities have abandoned us. We do not understand why our sector is being sacrificed in this way.”