Pernod, LVMH, Rémy spared from China tariffs on Cognac

China has excluded the three major spirits giants from its punitive tariffs on Cognac, announced today (4 July).

Pernod, LVMH, Rémy spared from China tariffs on Cognac

Pernod Ricard, LVMH and Rémy Cointreau have all been spared from China’s duties of up to 34.9% on EU brandy producers.

Announced today, China’s Ministry of Commerce (MOFCOM) has confirmed anti-dumping tariffs on EU brandy of up to 34.9% beginning on 5 July 2025 and lasting for five years. The average duty imposed, which applies to wine spirits, marc spirits, and brandies from the EU, is 32.2%. This average duty is slightly lower than the provisional average duty imposed since October 2024.

This is the Ministry’s final ruling on the subject, which has caused uncertainty for brandy producers, most of which are Cognac houses in France, since January 2024.

Florent Morillon, President of the Bureau National Interprofessionnel du Cognac (BNIC), said: “This decision marks the end of the anti-dumping investigation, but not the end of our action to ensure that all our exporters regain unrestricted access to the Chinese market as soon as possible. In the meantime, the minimum price commitment regime offers more tolerable conditions for our companies than the announced definitive anti-dumping taxes, even if the market access they allow remains degraded.”

According to Reuters, most of France’s cognac industry — including big brands LVMH-owned Hennessy and Remy Martin — will be exempt from the duties provided they sell at a minimum price, the ministry said in a statement.

MOFCOM did not disclose the minimum prices.

The BNIC said in a statement shared with db: “This minimum price commitment regime, which in no way constitutes recognition of a dumping practice, will be less unfavorable than the anti-dumping taxes. Nevertheless, the companies benefiting from it will remain in a degraded situation compared to the conditions they experienced in the Chinese market before the procedure launched in January 2024.

“This is why we renew our appeal to the French government and the European Commission to find a political agreement as soon as possible with the Chinese authorities to return to a situation without anti-dumping duties.”

The MOFCOM announcement also confirms the restoration of guarantees paid since October 2024. However, no information is given on the reopening of the duty-free market, from which Cognac has been excluded since December 2024 and which traditionally represents nearly 20% of its sales in China.

In 2023, prior to tariffs, China imported around US$1.7 billion worth of French brandy – almost entirely Cognac – and was the industry’s most important single market as measured by value and the second-largest by volume after the United States.

By February, the dispute had cost Cognac more than €50m in lost sales. Those losses have continued to grow because of a “deposit” scheme placed on the imports, but also because the lucrative travel retail market in China has effectively been shut off. Read more here.

Related news


#WeekInPictures: Will Poulter, cocktail collabs and a freedom door


Why everyone’s talking about the Maremma


Why Valdo Spumanti stays true to its heritage

Source link

Visited 1 times, 1 visit(s) today

Related Article

[News] NXP Reportedly Eyes Local Foundry Partner to Boost Full Chipmaking in China

[News] NXP Reportedly Eyes Local Foundry Partner to Boost Full Chipmaking in China

Amid rising U.S. export controls and looming tariff risks, Dutch chipmaker NXP is doubling down on its China localization strategy—“In China, For China, For the World.” According to Chinese outlet Jiemian, the company now plans to partner with a local foundry to manufacture its chips entirely within China. Citing remarks from Xiang Zhou, Marketing Director

The wooden tools found at the site of Gantangqing in China. Image credit: Liu et al., doi: 10.1126/science.adr8540.

300,000-Year-Old Wooden Tools Discovered in China

Archaeologists have unearthed an assemblage of 35 wooden tools — digging sticks and small, complete, hand-held pointed tools — at the Early Paleolithic site of Gantangqing in southwestern China. This discovery reveals that hominins who used these tools crafted the wooden implements not for hunting, but for digging and processing plants. The wooden tools found

No. 1 factor that will define whether US or China wins AI race is ..., says Microsoft President Brad Smith

No. 1 factor that will define whether US or China wins AI race is …, says Microsoft President Brad Smith

Beijing is rapidly closing the gap on the United States in the global artificial intelligence race, sparking fears that China’s advancements could fuel strategic military capabilities and amplify disinformation, according to a Wall Street Journal report. Multinational banks, universities, and tech companies across Europe, the Middle East, Africa, and Asia are increasingly adopting Chinese language

A soldier of Ukraine’s 30th Separate Mechanised Brigade prepares to fires a rocket launcher toward Russian positions at the front line in the Donetsk region of Ukraine on Thursday. Photo: AP

Exclusive | China tells EU it cannot afford Russian loss in Ukraine war, sources say

Chinese Foreign Minister Wang Yi told the European Union’s top diplomat on Wednesday that Beijing cannot afford a Russian loss in Ukraine because it fears the United States would then shift its whole focus to Beijing, according to several people familiar with the exchange. The comment, to the EU’s Kaja Kallas, would confirm what many

US lifts exports restrictions on chip design software for China: Report

US lifts exports restrictions on chip design software for China: Report

The Trump administration has reportedly relaxed export license rules for some chip design software sales to China. According to a Bloomberg report, the US Commerce Department has informed Siemens AG – one of the world’s leading chip design software providers that requirements to seek government licenses for business in China are no longer in place.

China warns against trade deals that hurt others

China warns against trade deals that ‘hurt’ others

BEIJING China warned on Thursday against trade deals that “hurt third parties” after U.S. President Donald Trump said he had struck an agreement with Vietnam. “China has always advocated that all parties resolve economic and trade differences through equal dialogue and consultation,” Foreign Ministry spokeswoman Mao Ning said. “At the same time, relevant negotiations and

Greater Bay Airlines
Quanzhou Flights

China Bridges The Past And Future By Linking Quanzhou’s Tang Dynasty Legacy To Modern Hong Kong Through Greater Bay Airlines’ Powerful Daily Service

Home » AIRLINE NEWS » China Bridges The Past And Future By Linking Quanzhou’s Tang Dynasty Legacy To Modern Hong Kong Through Greater Bay Airlines’ Powerful Daily Service Thursday, July 3, 2025 Greater Bay Airlines (GBA) is expanding its route network with a new scheduled service connecting Hong Kong to Quanzhou in Fujian Province, beginning

0
Would love your thoughts, please comment.x
()
x