China exempts cognac from EU brandy tariffs

China spared major cognac producers Pernod Ricard, LVMH and Remy Cointreau from hefty duties on EU brandy Friday, a rare bright spot at a time of trade tensions between Brussels and Beijing as the two sides row over tariffs on Chinese-made EVs.

- REUTERS

China will from Saturday levy duties of up to 34.9% for five years on brandy originating in the European Union, most of it cognac from France, the Chinese Commerce Ministry said in a final ruling.

But 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. It did not disclose the minimum prices.