In a significant tit-for-tat move, China has announced provisional tariffs ranging from 30.6% to 39% on European brandy imports, following the European Union's approval of tariffs on Chinese electric vehicles. This latest development has sparked concerns over escalating trade tensions between China and the EU, with industry stakeholders fearing a broader trade war. The Chinese government reportedly aims to use these tariffs as leverage in ongoing discussions regarding electric vehicle tariffs. The new duties are expected to negatively impact shares of European spirits and luxury beverage makers, highlighting the escalating strain in trade relations.