Cognac producers fear China tit-for-tat tariffs

Frustrated cognac producers in south-western France are growing increasingly anxious over the looming threat of Chinese tariffs on European brandy, a move industry representatives worry could force French liquor from the Chinese market.

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Some 800 protesters riding on tractors and carrying signs gathered in France's south-western town of Cognac last week demanding a delay to an upcoming European Union (EU) vote to impose duties on Chinese electric vehicles (EVs).

The protest the first since 1998 comes after Beijing refused to rule out future tariffs following an anti-dumping investigation into brandy imported from the EU.

The probe was launched months after the EU undertook an investigation into Chinese EV subsidies.

And with the EU set to vote this week on introducing tariffs on Chinese EVs, France's brandy makers are worried about the consequences that vote could have on their livelihood.

"The situation is urgent," said Mr Anthony Brun, the union head.

Cognac's brandy makers, adding that a decision to levy tariffs on Chinese EVs "will jeopardise the entire industry".