China has confirmed the implementation of five-year anti-dumping tariffs of up to 34.9% on EU brandy imports from this weekend.
The decision, announced by the country’s Ministry of Commerce today (4 July), follows an investigation into claims that European brandy was being sold in China at unfairly low prices. However, major cognac brand owners, including Pernod Ricard, Rémy Cointreau and Moët Hennessy, have agreed to minimum pricing terms and will subsequently be exempt from the tariffs.
The ruling concludes a months-long inquiry launched at the start of last year that was linked by some observers to the European Union’s tariffs on Chinese electric vehicles. Local trade associations had argued that the pricing practices of certain EU producers posed a material threat to China’s domestic spirits sector.
To avoid the new tariffs, a group of European exporters submitted price commitments, agreeing to sell above a set floor price on the Chinese market. In return, these companies will be permitted to trade without duties, under the conditions set out by the Ministry.
China has also confirmed that security deposits collected since October last year will be refunded, offering some financial relief to affected importers. The anti-dumping duties will apply only to companies not covered by the pricing agreement, many of whom remain exposed to the full tariff range.
The DG of European trade group SpiritsEurope, Hervé Dumesny, expressed “deep regret” over the ruling, calling the tariffs unjustified and warning of broader trade implications. “Beyond its direct impact on our sector,” he said, “this decision risks fuelling trade tensions at a time when mutual cooperation is more important than ever.”
While leading cognac brands such as Martell, Rémy Martin and Hennessy are covered by the exemptions, many other EU producers are not. Dumesny urged Chinese authorities to extend the pricing arrangement to all eligible exporters that have committed to the terms.
Earlier this year, Global Drinks Intel learned that cognac brand owners had been prevented from refilling their stock levels in China’s global travel retail sales channel since the end of 2024.
