These antidumping duties were implemented following the EU's decision to impose tariffs of up to 35.3 percent on Chinese electric vehicles, citing issues of unfair competition.

The French cognac industry is currently facing significant financial losses, amounting to €50 million monthly, due to antidumping duties imposed by China since mid-October 2024.

The Chinese market is vital for the cognac sector, being the top market in value and the second largest in volume after the United States.

Concerns are mounting among cognac producers, with one executive expressing feelings of being 'sacrificed' by the French government amidst these trade challenges.

Florent Morillon from the BNIC has warned that these tariffs are beginning to threaten jobs within the industry, which supports over 70,000 positions.

These tariffs have led to a staggering 50 percent decline in monthly cognac shipments to China, which accounts for 98 percent of sales for French producers.

In response to the crisis, the BNIC is urging French Prime Minister François Bayrou to visit China and negotiate a resolution to the ongoing trade dispute.

The return of Donald Trump to the White House adds another layer of uncertainty for the cognac industry, recalling his previous aggressive trade policies, including a 25 percent tariff on cognac.