French Cognac Makers Seek Compromise in Chinese Tariff Dispute

French cognac producers are currently embroiled in intense negotiations with China, proposing a range of minimum prices to export their spirits, as revealed by a document seen by Reuters. The producers hope to resolve a stand-off over potential tariffs that could rise as high as 39%.

The context is a fraught trade climate, with China's commerce ministry conducting an anti-dumping investigation. This is compounded by a separate dispute between China and the European Union, where the latter imposed tariffs on Chinese electric vehicles. In a bid to avoid crippling tariffs, cognac companies have pledged voluntary minimum price levels.

The stakes are high, as the deadline for concluding the talks fast approaches. An agreement with China, which is the most valuable export market for French cognac, could relieve pressures on an industry already affected by a fragile relationship with the United States, another key market.

(With inputs from agencies.)