China hits back at EU with brandy tax

Published On Oct 8, 2024, 8:21 AM

China has implemented new duties on imports of European brandy, in what France claims is a retaliation against recent EU tariffs on Chinese electric vehicles. The European Commission plans to challenge these taxes at the World Trade Organization, labeling them an abuse of trade measures. The duties could have significant adverse effects on French brandy producers, with major brands like Hennessy and Remy Martin expected to be impacted, resulting in declines in their stock prices. Additionally, China may consider increasing tariffs on large-engine vehicles from Germany and other products, which would further strain trade relations and impact stocks in those sectors.