China targets EU brandy with tariffs in tit-for-tat over Chinese EVs

China announced on Tuesday that it had imposed provisional tariffs on European brandy, after the bloc recently approved new tariffs on the import of electric cars from China.

The Ministry of Commerce in Beijing said importers of certain brandy varieties will be required to deposit an unspecified amount with Chinese customs starting this Friday.

The move comes amid a trade conflict with the European Union and likely responds to the recent EU decision to proceed with tariffs on Chinese electric vehicles. The European Commission has the power to impose levies of up to 35.3%. They are set to apply from the start of November.

Beijing criticized the EU's measures as protectionist, accusing Brussels of ignoring facts and violating World Trade Organization (WTO) rules.

Despite the rising trade tensions, Beijing said it continues to seek a negotiated solution.

Meanwhile, further investigations into EU products are underway in China. In July, the Ministry of Commerce launched an inquiry into EU pork, and anti-subsidy investigations are ongoing for certain dairy products.

The commission will challenge the provisional tariffs on European brandy at the World Trade Organization, Olof Gill, a spokesman from the EU executive arm said on X.

"We believe that these measures are unfounded, and we are determined to defend EU industry against abuse of trade defence instruments," he said.

EU Economy Commissioner Paolo Gentiloni said that the EU placed tariffs on Chinese electric vehicles after "a serious investigation concerning risks of overproduction in some sectors."

Speaking at a press conference in Luxembourg after a meeting of EU finance ministers, Gentiloni described the EU's actions as proportionate, and that therefore there was no reason for Beijing to retaliate.