China’s Ministry of Commerce has announced it will impose anti-dumping duties of up to 35% on cognac imports from the European Union, effective this week, for the next 5 years. The decision follows months of investigation into claims that European brandy producers were selling their products in China below fair market value.
The tariffs, which vary depending on the producer, will likely have the greatest impact on French exporters, who currently dominate the premium brandy segment in China. Industry insiders say the new levies could curtail shipments from some French brands, whose products have long enjoyed strong demand in China’s hospitality and retail sectors.
Some good news came this week as it seems that some of the largest brands like Hennessy and Remy Martin, will be able to avoid these duties if they will sell at a minimum price (which has not bees established yet).e
A Response to Escalating Tensions
The move is widely seen as a response to recent European actions targeting Chinese electric vehicle makers with similar duties. While Chinese officials have framed the brandy tariffs as a legitimate response to dumping, the timing and scope suggest a retaliatory intent, adding to concerns about a brewing trade war between Beijing and Brussels.
For EU exporters, this development introduces major uncertainty. France alone ships over €1 billion in brandy to China yearly, making it one of the largest single-country suppliers. Many of those exports could now face duties that could price them out of the Chinese market entirely.
Opportunities for Non-EU Exporters?
With the EU’s premium brandy market share under pressure, producers from non-EU countries—such as the United States, South Africa, and Australia—may find a window to expand their presence in the Chinese market. However, brand recognition, distribution networks, and local preferences still pose barriers to rapid market entry.
Spirits importers in China are also bracing for disruptions. Distributors may look to diversify portfolios and seek more competitively priced alternatives, including high-end baijiu and new world spirits.
What It Means for the Global Trade Landscape
This latest policy shift adds a new layer of complexity for wine and spirits traders navigating China’s regulatory environment. Exporters, importers, and logistics providers should closely monitor customs updates and seek legal counsel on how to adapt contracts and pricing structures to the new reality.
As the situation unfolds, BestWineImporters will continue to provide help with its global database of over 20.000 spirits importers from 169 countries, that can allow producers to identify new partners around the world.
