Cognac producers in France have reached a tentative agreement with China on minimum import prices, but the signing depends on progress in the dispute over tariffs for electric vehicles.

French cognac producers have negotiated a provisional agreement with the Chinese authorities to set minimum import prices, crucial in the context of declining sales in China. The deal, which includes different prices for different categories of cognac, is conditional on progress in talks on EU tariffs on Chinese electric vehicles. In the absence of an agreement by July 5, temporary tariffs could become permanent. Manufacturers see themselves as collateral victims of the EU-China trade conflict, and their shares have fallen sharply as a result.