China Eases Trade Tensions: No Tariffs on EU Brandy

China announced it will not impose provisional tariffs on brandy imported from the EU, although it found the product sold below market prices. This decision gives room for negotiations amid tense trade talks, especially as the EU considers tariffs on Chinese electric vehicles. The move is likely a strategic bargaining chip.

China announced on Thursday that it will not impose provisional tariffs on European Union brandy imports despite evidence that the product was sold below market prices. The decision gives both sides room to breathe amid sensitive trade negotiations.

The Chinese commerce ministry revealed that European distillers had been selling brandy at a dumping margin of 30.6% to 39%, impacting China's domestic industry. Nevertheless, no immediate anti-dumping measures will be taken, though Beijing left the door open for future action.

This move is seen as a negotiation tactic to influence an upcoming EU vote on tariffs for Chinese-made electric vehicles. Analysts anticipate ties between the two issues, even as French cognac makers express concerns over potential future duties.