The Chinese commerce ministry has described the tax as an 'anti-dumping' measure designed to protect domestic producers from significant harm caused by European imports.
The European Commission has vowed to challenge the new taxes at the World Trade Organization (WTO), calling the move an 'abuse' of trade defence measures.
Major French brands like Hennessy and Remy Martin are expected to be hit hard by the move, with industry experts warning of 'catastrophic' consequences.
Shares of luxury brands involved in the production of brandy tumbled after the announcement, with analysts warning that the tariffs could result in a 20% price increase for Chinese consumers.
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