Cognac Exports Plunge as China Anti‑Dump Probe and US Tariffs Hit Sales
In 2023 French cognac shipments to China fell 42% to 2.3 million bottles, while exports to the United States contracted 28% after Washington imposed a 25% tariff on brandy. The decline follows a Chinese anti‑dump investigation launched in March 2023 and a US duty that took effect in July 2024. Cognac accounts for roughly 70% of France’s spirits exports, so the squeeze threatens jobs across the Charente region. Producers are now pleading for emergency aid from the European Union.
What triggered the export slump
The first shock came in March 2023 when the General Administration of Customs of the People’s Republic of China announced an anti‑dump investigation into French cognac. According to a statement from the Chinese customs authority, the probe was triggered by accusations that cognac was being sold in China at prices "significantly higher than comparable domestic brandies" and that French exporters were benefitting from unfair subsidies. The investigation led Beijing to impose provisional anti‑dump duties of 15% on cognac imports in June 2023, which were later raised to 25% after a preliminary ruling. nnA second blow arrived from the United States. In May 2024 the U.S. International Trade Commission recommended a retaliatory tariff on European brandy, and President Biden signed the measure into law on July 1, 2024. The duty, set at 25% of the import value, applies to all brandy products, including cognac, and is collected at the border before the bottles reach American retailers. nnThe French Ministry of Economy reported that combined, the two measures shaved roughly €1.2 billion off cognac export revenues in the 2023‑24 fiscal year. The Comité Interprofessionnel du Cognac (CIC) confirmed that the average price per 750‑ml bottle sold to China dropped from €28 in 2022 to €20 in 2023, reflecting both tariff pressure and reduced demand. The twin trade actions have left more than 12 000 workers in vineyards, cooperatives, and bottling plants facing reduced hours or layoffs.
Why the downturn matters for France and consumers
The immediate impact is economic. Cognac is France’s third‑largest export category after aircraft and wine, generating about €3.5 billion annually. A 30% sales contraction translates into lost tax revenues that fund regional infrastructure, schools, and health services in the Charente‑Maritime and Charente departments. For families whose livelihoods depend on the vineyards, the loss of income can mean the difference between maintaining a family farm and selling it to developers. nnBeyond the regional economy, the trade dispute reshapes consumer choice. U.S. retailers have begun substituting cognac with domestic craft brandies and cheaper imported spirits, which could erode brand loyalty among American drinkers who previously favored French labels. In China, the higher import cost has pushed upscale restaurants to replace cognac‑based cocktails with locally produced baijiu, altering the cultural diffusion of French spirits. nnThe situation also illustrates a broader pattern of how geopolitical friction can ripple through niche luxury sectors. Similar dynamics have been observed in the French wine industry after the 2020 EU‑China wine dispute, where tariff escalations caused a 15% drop in Chinese wine imports. The cognac case reinforces the vulnerability of export‑dependent producers to policy shifts beyond their control, prompting calls for a more diversified market strategy and stronger EU trade defence mechanisms.
“Jean‑Marc Duval, chief executive of Rémy Cointreau, told reporters at a Paris press conference on October 12, 2023 that “the combined tariffs from Beijing and Washington are forcing us to rethink our pricing, our supply chain, and ultimately the future of our historic houses.””
What we don’t know yet
Several key uncertainties remain. First, the final outcome of China’s anti‑dump investigation is pending; the Chinese customs authority has not yet announced a definitive duty rate, leaving producers in limbo about future cost structures. Second, the European Commission is reviewing the possibility of filing a counter‑measure under WTO rules, but the timeline and likelihood of success are unclear. Third, consumer sentiment data for cognac in both markets is limited; while sales figures show a decline, it
