China has excluded leading cognac makers Pernod Ricard, LVMH, and Remy Cointreau from new tariffs of up to 35% on EU brandy, announced on Friday, as long as they agree to sell at or above a set minimum price.

The move follows a final ruling by China’s Commerce Ministry, which concluded an investigation launched last year into brandy imports from the European Union—primarily cognac from France.

Companies that do not commit to the minimum price or violate it will face anti-dumping duties of up to 34.9% for five years starting July 5, 2025.

The ministry did not reveal the specific minimum price levels.

In addition, China’s Commerce Ministry will refund deposits collected from brandy producers since October 2024, when provisional tariffs were first imposed. According to two industry sources, the refund had been a major point of contention during the months-long negotiations, particularly for smaller producers.

Remy Cointreau, owner of the Remy Martin brand, welcomed the outcome, stating that the minimum price agreement offered “a substantially less punitive alternative,” allowing the company to “strengthen certain investments in China.”

French cognac makers collectively export approximately US$3 billion worth of products globally each year.