The cognac industry can kick back and have a drink. On the eve of the deadline set for Saturday, July 5, the Chinese Ministry of Commerce announced on July 4 the imposition of average customs duties of 32.2% on imports of wine-based spirits from the European Union – meaning cognac. But companies that, during the proceedings, negotiated a minimum price agreement − with price increases estimated between 12% and 16% − will be able to avoid the new tariffs. On Friday afternoon, French President Emmanuel Macron welcomed the move as "a positive step toward ending a dispute that threatened our exports," while promising to continue dialogue with Beijing.

This way out is expected to benefit 34 companies, including the three major French groups: the luxury giant LVMH, the market leader with its Hennessy brand; the spirits group Pernod Ricard, owner of Martell; and its rival Rémy Cointreau, known for the Rémy Martin brand. The outcome is likely to be much harsher for about 20 smaller cognac houses, which are being hit hard.

In announcing its decision, the Chinese Ministry of Commerce specified that it was ending its anti-dumping investigation into European exports of wine-based spirits, which primarily affected cognac and therefore targeted France. Beijing had launched the investigation in January 2024, in retaliation for Brussels' decision to tax imports of Chinese electric vehicles into Europe. The standoff led to the introduction of provisional taxes on cognac in October 2024, with customs duties ranging from 35% to 39%. According to the Bureau National Interprofessionnel du Cognac (BNIC, the French national cognac trade body), amounts collected before the permanent tariffs take effect should be reimbursed.

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