Pernod Ricard, Rémy Cointreau and Möet Hennessy have all been granted exemption from China’s new 34.9% EU brandy tariffs.

From yesterday, (Sunday 6 July), China implemented tariffs ranging from 27.7% to 34.9% over the next five years.

However, it is understood that leading cognac giants, such as Pernod Ricard, Rémy Cointreau and Möet Hennessy have all escaped the new levy, on the condition they sell their products at a minimum price.

Beijing’s Ministry of Commerce (MOFCOM) first revealed that it would implement the tariffs on Friday (July 4), in response to the conclusion of its investigation, which showed that European producers have been “dumping” cheaper products on the Chinese market, thereby increasing China’s domestic brandy sector.

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It follows China launching its anti-dumping investigation in January 2024, looking into European markets selling cheap cars in Chinese markets.

In response to today’s new regulations, Pernod Ricard said it “welcomes” the  conclusion of the investigation, and agrees to a minimum price undertaking. However, it added, this agreement “does not constitute an acknowledgment of dumping practices.”

The French alcohol company added: “Pernod Ricard regrets the increase in the cost of operating in China but notes that the additional costs arising from the agreed minimum price undertaking are significantly less than would be the case if the provisional Anti-Dumping tariffs had been made permanent.”

“As this process concludes, Pernod Ricard remains committed to long term sustainable growth in China, one of our four Must Win markets, leveraging its market leading position in Cognac, and in International Spirits, that it has successfully built over its decades long engagement in the country.”

The news comes mere months after the brandy sector was hit with concerns over the US’ own new slew of tariffs, introduced under President Trump.