The News
China will impose provisional tariffs of 30% to 39% on imported European brandy, escalating the trade dispute between Brussels and Beijing after the bloc approved an increase of up to 35% of levies on Chinese EVs.
The European Commission will challenge the brandy duty with the World Trade Organization, describing the tariffs as “unfounded” and an “abuse of trade defence instruments.”
The new tax could give China a bargaining chip in talks with the EU over whether to reduce or even scrap the EV duties. The EV tariffs, set to come into force at the end of October, have caused friction among member states that Beijing may aim to use to its advantage, The Associated Press noted.
China has already opened “anti-dumping” investigations into EU products including pork and dairy to deter the bloc from raising EV tariffs further.
Shares of some of the biggest European brandy producers fell between 4% and 9% after the announcement.