The decision was made by Chinese authorities who, after several months of investigations, found that the EU's cognac manufacturers are dumping their products in China and thus harming the domestic cognac industry.
The largest cognac manufacturers, Remy Cointreau, Pernod Ricard, and LVMH's Hennessy, which have seen sales in China plummet after preliminary tariffs on the drink were introduced last year, will however be exempt from the new tariffs.
The manufacturers have agreed to keep the prices of their drinks above a certain level in order not to contribute to the pressure on Chinese cognac producers.
The preliminary tariffs were introduced by China as a response to the EU's decision to impose tariffs of 45 percent on electric vehicles manufactured in China.
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