The European Union (EU) imposed high tariffs of up to 45.3% on Chinese electric vehicles through a member state vote, prompting China to take retaliatory measures such as implementing anti-dumping duties on EU brandy.
On the 8th, China's Ministry of Commerce announced on its official website that it would implement provisional anti-dumping measures on imported EU brandy starting from the 11th.
Accordingly, from the 11th, importers of EU brandy will be required to pay deposits to Chinese customs based on the deposit rates determined in the preliminary ruling. This measure is similar to tariffs and will increase import costs.
This appears to be a response to the EU's recent decision to set the tariff rate on Chinese electric vehicles at a maximum of 45.3%.
In the announcement, China's Ministry of Commerce stated, "Dumping of imported EU brandy has been confirmed, and there is concern that the domestic brandy industry will suffer significant damage. The preliminary ruling found a causal relationship between dumping and the threat of substantial injury." The ministry had launched an anti-dumping investigation into EU brandy in January.
Meanwhile, in the EU vote, 10 of the 27 member states, including France and Italy, voted in favor. Five countries, including Germany and Hungary, opposed it. Twelve countries abstained but are effectively considered to have supported the measure. As a result, Chinese electric vehicles will face additional tariffs ranging from 7.8% to 35.3% on top of the existing general tariff of 10%. The final tariff rate will be between 17.8% and 45.3%, applied for five years starting from the 31st of this month. However, the EU plans to continue negotiations with China, so there remains a possibility that the imposition of confirmed tariffs could be suspended if an agreement is reached.
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