(Photo: Martini)
On Monday, Vino Joy reported that China has raised tariffs on a range of alcohol products including vermouth, brandy and whisky.
According to statements issued by China's State Council Tariff Commission and the U.S. Foreign Agricultural Service, the country more than doubled the tariff on vermouth and "other wine in small containers" from 14% to 30% as of Jan. 1, 2025. China also removed a 5% provisional tariff on brandy and whisky imports, placing both spirits into the 10% most-favored-nation tariff rate.
The move — which went largely unreported at the time of its announcement—may be linked to an ongoing trade war between Chinese and European officials.
The conflict dates back to Sept. 2023 when the E.U. announced an investigation into "artificially low" Chinese electric vehicle subsidies. In response, China promised to raise tariffs on European brandy. Those tariffs have since been implemented, forcing importers of European brandy to pay a security deposit between 30.6% to 39.0%. Though broad in scope, the plan was excruciatingly specific in effect. French cognac accounted for nearly 99% of European brandy exports to China in 2023, amounting to $1.7 billion in sales that year alone. The fallout from China's tariffs has resulted in major losses for the country's biggest cognac producers and a wave of protests throughout the region.
Vermouth seems poised to become the next target. France, Spain and Italy account for over 65% of the world's vermouth exports, racking in a combined $500 million annually. When tariffs are implemented on vermouth, it's E.U. member states that bear the burden.
However, it's unlikely that these latest tariffs will have as devastating an effect as those imposed on cognac last year. According to Vine Joy, vermouth accounted for a slim 0.15% of China's total wine imports in 2024. The country's market leader is reportedly Martini, an Italian brand owned by international liquor conglomerate Bacardi.
Vermouth is a type of fortified wine flavored and occasionally colored with a blend of herbs, spices and botanicals. The drink is wildly popular throughout the U.S. and Europe as a key ingredient in iconic cocktails like the martini, Negroni and Manhattan.
China's tariff hikes on whisky and brandy cast a wider net. These tariffs will supplement — not replace — the existing fees placed on European brandy imports, indicating that their scope is intended for international distillers of all countries. Australia, Chile and Georgia will reportedly remain exempt from the alcohol tariffs due to China's free trade agreement with those countries.
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