French Cognac Makers Eye Relief with Tentative Deal Amidst EU-China Trade Tensions

French cognac makers have struck a tentative agreement on setting minimum import prices for the Chinese market, yet the deal's completion hinges on resolving a separate conflict involving EU tariffs on Chinese electric vehicles.

Sources indicate that the agreement, if finalized by the July 5 deadline, would provide significant relief to companies such as Pernod Ricard, Remy Cointreau, and LVMH, who have faced dwindling sales amid economic challenges.

The proposed minimum import prices for various cognac categories range from 46 yuan to 613 yuan per litre, potentially easing the financial burden compared to existing customs duties. Despite cautious optimism, the deal awaits a formal nod from Chinese authorities.

(With inputs from agencies.)