Quick overview
- China is considering countermeasures against a proposed 30% tariff on its products by the EU, potentially tarreceiveing French wine exports.
- A social media account linked to China’s state broadcaster warned that such tariffs would be seen as a declaration of trade war.
- The French government has not yet taken concrete action on the tariff proposal, which remains under consideration.
- This situation echoes last year’s trade tensions, where China exempted cognac producers from EU tariffs in response to previous measures.
The Asian giant is weighing potential countermeasures in response to an unprecedented tariff proposal by the European bloc.
China could launch investigations into French wine exports or even impose “reciprocal tariffs” on products from the European Union (EU) if France pushes for the activation of tariffs on Chinese goods, according to a social media account affiliated with China’s state broadcaster CCTV.
The digital account, Yuyuan Tantian, published and analyzed a strategic report by the French government that urged the EU to consider imposing an unprecedented blanket 30% tariff on Chinese products, or alternatively engineering a 30% depreciation of the euro against the renminbi to counter the surge in low-cost imports.
“That would be equivalent to declaring a trade war on China,” Tantian stated. “China has always kept the door open to dialogue, but it is also well prepared to confront all challenges,” the post added.
What’s happening in France
So far, France has taken no concrete action. “As you can see today, the proposal has not been adopted by the government, which does not mean it is unfounded,” stated French government spokesperson Maud Bregeon. Meanwhile, the French Ministries of Trade and Finance did not immediately respond to requests for comment.
This dispute has a precedent in last year’s episode, when China exempted major cognac producers from steep EU brandy tariffs following a more than year-long “anti-dumping” investigation. That shift was widely seen as retaliation for EU tariffs on electric vehicles manufactured in China—measures that France had voted in favor of.
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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