(Finance) – China has imposed temporary anti-dumping measures on imports of brandy from the European Union, affecting brands from Hennessy to Remy Martin, in response to what was decided by the bloc of 27 states which voted for the tariffs on electric vehicles (EV) made in China.
Starting from October 11thwe read in the press release from the Chinese Ministry of Commerce, importers will have to provide Chinese customs with what the ministry has defined as a security deposit corresponding to brandy imports arriving from the EU.
France is seen as the target of Beijing’s brandy probe because of its support for tariffs on Chinese-made electric vehicles. It also accounted for 99% of China’s brandy imports last year, with shipments of French brandy reaching $1.7 billion.
Hennessy and Remy Martin were among the hardest hit brands, with importers having to pay security deposits of 39% and 38.1% respectively.
The reaction of the securities listed on the Paris stock exchange is sudden: the shares Pernod Ricard slip by more than 4 percentage points, while Remy Cointreau loses 5%. Down 4.8% LVMHowner of Hennessy.