Tensions between the U.S. and Europe over their differing approaches to support for Ukraine have emerged, with the U.S. increasingly perceived as favoring Russia.

With cognac exports accounting for 98% of sales, the industry, valued at €3.35 billion, is heavily reliant on markets like the United States and China, which together comprise a substantial portion of their shipments.

French Foreign Minister Jean-Noël Barrot is currently visiting China for two days, starting March 27, 2025, to engage in discussions on Ukraine and trade issues with Chinese Foreign Minister Wang Yi.

The cognac industry in France is particularly concerned about these tariffs, as they could lead to significant financial repercussions, including potential bankruptcy for producers and the loss of 70,000 jobs.

Both ministers acknowledged their collaborative efforts to tackle climate challenges, reaffirming China's commitment to international climate governance as they mark the 10th anniversary of the Paris Agreement.

Barrot expressed optimism about resolving the trade dispute, viewing the current situation as a 'reprieve' while emphasizing the need for ongoing diplomatic efforts.

In addition to trade discussions, both countries aim to enhance cooperation in various sectors, including agriculture, nuclear energy, and green technologies, highlighting their commitment to multilateralism.

On the geopolitical front, Barrot urged China to leverage its influence to encourage Russia to engage in meaningful negotiations regarding the ongoing conflict in Ukraine.

This visit comes in the wake of China's announcement of provisional tariffs on European brandies, which range from 30.6% to 39%, following the EU's imposition of duties on Chinese electric vehicles.

Wang Yi highlighted the importance of multilateralism in addressing the chaos in the international landscape, emphasizing the need for both nations to uphold this principle.

The historical relationship between China and France has been marked by both cooperation and tension, dating back to France's recognition of the People's Republic of China in 1964.

The threat of Russian aggression remains a significant concern for Barrot, who noted that it has expanded beyond Ukraine in recent years.