In a significant escalation of trade tensions, French cognac makers are expressing their outrage over potential Chinese tariffs that could reach as high as 35 percent on European brandy. Approximately 800 cognac producers gathered in Cognac, France, to protest and demand a delay on the European Union's upcoming vote regarding tariffs on Chinese electric vehicles, scheduled for September 25, 2024. This protest marks the first of its kind since 1998, highlighting the urgency of the situation for the cognac industry [5b899a94].
Anthony Brun, the head of the cognac producers' union, warned that the imposition of these tariffs could jeopardize the entire industry, which has already seen a 22 percent drop in sales in 2023. China is a crucial market for French brandy, accounting for 25 percent of its exports. The head of the National Interprofessional Bureau for Cognac (BNIC), Florent Morillon, echoed these concerns, stating that such tariffs could effectively eliminate French brandy from the Chinese market, threatening the livelihoods of 4,400 farms and 85,000 jobs within the sector [5b899a94].
The backdrop to this protest includes China's recent decision to launch an anti-dumping investigation into EU brandy, a move that has raised alarms among French producers. French President Emmanuel Macron had previously expressed gratitude to Chinese President Xi Jinping for not imposing duties, but the current climate suggests a shift in relations as trade disputes escalate [5b899a94].
This situation unfolds against a broader context of trade tensions between China and the European Union, which have seen both sides engaging in investigations and potential tariffs on various goods. For instance, China has initiated an anti-dumping investigation into certain pork products imported from the EU, while the EU is considering raising tariffs on Chinese electric vehicles. Analysts suggest that both sides are wary of further escalating trade frictions, but the cognac industry now finds itself at the center of this growing conflict [013d245c][a76575ef].
As the EU prepares for its vote on tariffs, cognac producers are urging for a resolution that would protect their industry and maintain their vital trade relationship with China. The outcome of this situation could have lasting implications not only for the cognac sector but also for broader EU-China trade relations [5b899a94].