China Slaps Up to 35% Tariff on EU Brandy as Trade Tensions Escalate
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A display of special edition bottles of cognac at L’Atelier Martell in Cognac, France, on Feb. 25, 2025. Photo: Bloomberg
China is to impose steep anti-dumping duties of up to 34.9% on brandy imported from the European Union from July 5, escalating trade frictions only weeks after Brussels restricted Chinese firms from participating in Europe’s medical equipment market.
China’s Ministry of Commerce announced on Friday that an investigation had found that EU-made brandy was sold in China at unfairly low prices, causing a “substantial threat of material injury” to the domestic industry. The ministry’s final ruling set dumping margins between 27.7% to 34.9%.
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- China will impose anti-dumping duties of 27.7% to 34.9% on EU brandy from July 5, 2024, targeting major producers Martell, Hennessy, and Rémy Martin.
- Brandy accounted for 60% of China’s imported hard liquor in 2024; 97.7% of China’s $129 million imports (Jan-May) came from France.
- The duties follow EU restrictions on Chinese firms in public medical contracts, intensifying Beijing-Brussels trade tensions.
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Who’s Who
- Martell
- Martell, a major EU brandy producer, will face a 27.7% anti-dumping duty on brandy imported into China beginning July 5. Martell is one of 34 Chinese companies to enter into price undertakings. These allow them to avoid anti-dumping duties by selling brandy at or above agreed minimum prices.
- Hennessy
- Hennessy, a major EU brandy producer, is impacted by China's anti-dumping duties. It faces a 34.9% tariff on its brandy imports to China. Hennessy is one of 34 EU companies that has applied for price undertakings, meaning it offered to sell its brandy in China at or above agreed minimum prices to avoid the full duties.
- Rémy Martin
- Rémy Martin is one of three major EU brandy producers facing punitive anti-dumping tariffs in China. From July 5, China will impose duties of 34.3% on Rémy Martin brandy. However, Rémy Martin is among 34 EU companies covered by price undertakings, allowing them to avoid these duties if they sell brandy at or above agreed minimum prices.
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What Happened When
- November 2023：
- China’s anti-dumping investigation into EU brandy began after a complaint by the China Alcoholic Drinks Association.
- August 2024：
- A preliminary ruling confirmed dumping of EU brandy in China but did not impose immediate penalties.
- By October 2024：
- Importers of EU brandy were ordered to post deposits of up to 39% as a temporary measure.
- Between January and May 2025：
- China imported $129 million worth of French brandy, accounting for 97.7% of its total brandy imports in that period.
- June 20, 2025：
- The European Commission barred Chinese companies from bidding on EU public medical contracts over 5 million euros.
- July 4, 2025：
- China’s Ministry of Commerce announced final anti-dumping duties on EU brandy, with dumping margins between 27.7% and 34.9%.
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