China plans to impose penalties on European brandy imports in retaliation against car tariffs.


China has escalated a trade dispute with the European Union by announcing temporary penalties on European brandy imports and considering broader tariffs on other European goods. The Chinese Ministry of Commerce imposed these measures in response to the EU's decision to proceed with anti-subsidy tariffs on electric cars from China. Brand importers will have to post deposits of up to 39 percent, which could become permanent tariffs. European brandy producers are accused of dumping their products at unfairly low prices in China, leading to a stock slump for major European brandy makers. European officials have refuted the dumping claims, highlighting that brandy is typically more expensive in China than in Europe. Spirits Europe criticized China's actions as a financial burden and called for negotiations. China is also contemplating tariffs on European pork, dairy products, and gasoline-powered cars, potentially impacting major exporters like Spain, the Netherlands, and Ireland. The Ministry of Commerce's move comes amid rising trade tensions between Europe and China, fueled by concerns over China's alignment with Russia and trade deficits. The World Trade Organization's rules prohibit trade retaliation without permission, but China avoided directly linking its brandy measures to the EU's actions on electric cars. The timing of the announcement, with most affected brandy imports coming from France, hints at a connection. The Ministry of Commerce has also requested a review of Turkey's 40 percent tariffs on Chinese electric cars. Turkey plans to exempt electric vehicle imports from companies setting up factories in the country, a move supported by BYD, China's top electric car manufacturer.



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