China announced on Tuesday that it has imposed provisional tariffs on European brandy, after the bloc recently approved new tariffs on electric car imports from China.
Beijing’s Commerce Ministry said importers of certain types of brandy will have to deposit an unspecified amount with Chinese customs from Friday.
The move comes amid a trade dispute with the European Union and is likely a response to the EU’s recent decision to go ahead with tariffs on Chinese electric vehicles. The European Commission has the power to impose levies of up to 35.3%. They will apply from early November.
Beijing criticized the EU’s measures as protectionist and accused Brussels of ignoring facts and violating World Trade Organization (WTO) rules.
Despite rising trade tensions, Beijing says it continues to seek a negotiated solution.
Meanwhile, further investigations into EU products are ongoing in China. In July, the Commerce Department launched an investigation into EU pork, and anti-subsidy investigations are underway for certain dairy products.
The commission will challenge the provisional tariffs on European brandy at the World Trade Organization, Olof Gill, a spokesman for the EU’s executive branch, said on X.
“We believe that these measures are unwarranted and we are determined to defend EU industry against abuse of trade defense instruments,” he said.
EU Economy Commissioner Paolo Gentiloni said the EU has imposed tariffs on Chinese electric vehicles after “a serious investigation into the risks of overproduction in some sectors.”
Speaking at a press conference in Luxembourg after a meeting of EU finance ministers, Gentiloni described the EU’s actions as proportionate, and that there was therefore no reason for Beijing to retaliate.