4 hours ago
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China has imposed duties connected imports of European brandy successful a determination that France has said is retaliation for caller large tariffs the EU announced connected Chinese electrical vehicles.
The European Commission said it would situation China's taxation astatine the World Trade Organization (WTO), calling it an "abuse" of commercialized defence measures.
But China said the determination was an "anti-dumping" measurement that would support its home producers.
French brandy producers said the duties, which volition deed large brands including Hennessy and Remy Martin, would beryllium "catastrophic" for the industry.
Shares successful brandy companies dropped aft the announcement.
China announced caller restrictions connected European brandy conscionable days aft EU countries approved steep tariffs connected Chinese-made electrical vehicles.
China's commerce ministry said brandy imports endanger "substantial damage" to its ain producers. Importers volition person to wage "security deposits" connected European brandy.
It besides said it was considering a hike successful tariffs connected imports of large-engine vehicles, which would deed German producers hardest, and pork and dairy products.
French Trade Minister Sophie Primas said the brandy taxation "seems to beryllium a retaliatory measure" aft the European Union determination to rise tariffs connected Chinese electrical cars.
She said that benignant of retaliation would beryllium "unacceptable", and a "total contradiction" of planetary commercialized rules, adding that France would enactment with the European Union to instrumentality enactment astatine the WTO.
France accounts for 99% of brandy exported to China, and French cognac lobby radical BNIC said the determination would beryllium "catastrophic" for the industry.
"The French authorities cannot wantonness america and permission america unsocial to woody with Chinese retaliation that has thing to bash with us," BNIC said, adding that the taxes "must beryllium suspended earlier it's excessively late".
Shares successful companies that merchantability spirits took a battering aft the Chinese announcement.
Luxury steadfast LVMH, which produces Hennessy, fell much than 3%, portion Remy Cointreau, which makes Remy Martin, fell much than 8%.
Analysts astatine Jefferies estimation that the tariffs could construe into a 20% terms summation for consumers, which would astir apt pb to volumes and supplier income falling by a fifth.
Shares successful German carmakers, which could besides beryllium deed by retaliatory moves from China, besides slid.
Volkswagen, Porsche, Mercedes-Benz and BMW were each down aft the announcement.
English (US)