EU’s Tax on Chinese Electric Vehicles Poses Risk to Cognac Industry

The EU has approved a tax on Chinese electric vehicles, alarming the cognac industry due to potential Chinese tariffs on cognac imports. French authorities’ support for the tax has left cognac producers feeling abandoned, worsening their outlook.

The European Union has recently approved a tax on electric vehicles imported from China, a decision that has raised significant concerns within the cognac industry. Industry representatives fear that this move could lead to retaliatory tariffs on French cognac exports to China. Despite engagements with French authorities at both Matignon and the Élysée in the past week, no positive adjustments were made. During the EU vote, France supported the tax alongside nine other member states, while twelve abstained, and five, including Germany, opposed it. This situation has left the cognac sector feeling abandoned by the French government, heightening fears of economic repercussions.

The imposition of tariffs on imported Chinese electric vehicles stems from concerns about unfair competition in the EU market. However, this decision could trigger a chain reaction, particularly impacting French exports in sensitive sectors such as cognac, which relies heavily on the Chinese market. The cognac industry is now facing the prospect of higher tariffs on its exports as a potential response from China, a situation that could jeopardize its financial stability.

The approval of tariffs on Chinese electric vehicles by the EU has created a precarious situation for the cognac industry, which now fears retaliatory actions from China. The consensus among cognac producers is one of disappointment and concern, declaring that they feel unsupported by the French government amid these negotiations. The outcome could significantly affect the industry’s exports and economic health in the near future.

Original Source: www.charentelibre.fr