### Rising Trade Tensions: China Imposes Anti-Dumping Duties on European Brandy China has escalated trade tensions with the European Union (EU) by imposing anti-dumping duties on European brandy, particularly targeting French cognac. The tariffs, which range from **27.7% to 34.9%**, will take effect on **July 5, 2025**, and will last for a period of five years. This decision follows an investigation by China's Ministry of Commerce, which concluded that there was dumping of imported brandy from the EU [https://apnews.com/article/china-eu-cognac-tariffs-dumping-c719de7597f425ebf4865ea3a82fb3c4]. Notably, major cognac producers such as **Pernod Ricard**, **Rémy Cointreau**, and **LVMH** have been exempted from these duties, provided they maintain their prices above a specified minimum level [https://www.bloomberg.com/news/articles/2025-07-04/china-imposes-anti-dumping-duties-on-eu-brandy-as-ties-sour]. ### Structure of the Response 1. **Overview of the Anti-Dumping Duties** - Details on the tariffs imposed by China. - Duration and scope of the duties. 2. **Exemptions for Major Producers** - Identification of companies exempted from the duties. - Conditions for exemption related to pricing. 3. **Context of Trade Relations** - Background on the trade tensions between China and the EU. - Implications of the duties on future trade negotiations. 4. **Potential Impact on the Market** - Expected effects on European brandy exports. - Reactions from the affected companies and markets. ### Supporting Evidence and Data - **Tariff Rates**: The anti-dumping duties will range from **27.7% to 34.9%**, averaging around **32.2%**, which is a reduction from the provisional **39%** introduced previously [https://news.az/news/china-spares-top-french-cognac-makers-in-brandy-tariff-dispute-with-eu]. - **Exempted Companies**: Major cognac producers such as **Pernod Ricard**, **Rémy Cointreau**, and **LVMH** are exempt from these tariffs if they adhere to minimum pricing commitments [https://www.channelnewsasia.com/east-asia/china-impose-duties-up-349-eu-brandy-starting-jul-5-5220486]. - **Trade Context**: This move is part of a broader trade dispute, with the EU also investigating Chinese electric vehicles (EVs), indicating a complex web of trade relations [https://telanganatoday.com/china-imposes-anti-dumping-duties-of-up-to-34-9-per-cent-on-european-brandy-as-trade-tensions-rise]. ### Summary of Findings 1. **China has imposed significant anti-dumping duties on EU brandy**, particularly cognac, as part of escalating trade tensions with the EU. The tariffs will be effective for five years starting July 5, 2025, with rates between **27.7% and 34.9%** [https://fortune.com/asia/2025/07/04/china-exempts-major-eu-brandy-makers-from-anti-dumping-duty]. 2. **Major cognac producers are exempt from these duties**, provided they maintain minimum pricing, which could mitigate some of the potential negative impacts on their sales [https://www.devdiscourse.com/article/headlines/3492367-update-3-china-spares-major-cognac-makers-from-eu-brandy-dumping-duties]. 3. **The imposition of these tariffs reflects ongoing trade disputes** between China and the EU, particularly in light of investigations into Chinese EVs, suggesting that these tensions may continue to affect trade relations in the future [https://www.scmp.com/economy/global-economy/article/3316945/china-levy-anti-dumping-tariffs-european-cognac]. 4. **The market for European brandy may face challenges**, but the exemptions for major producers could help stabilize their operations in the face of these new tariffs [https://www.indexbox.io/blog/china-imposes-up-to-349-tariffs-on-eu-brandy].