Oct 8 Reuters Shares of French spirits makers fell early on Tuesday after China announced provisional antidumping measures on brandy imports from the European Union.

From Friday, importers will be required to provide a security deposit to Chinese customs when importing relevant brandies originating in the EU, an aboutturn after Beijing recently said it would not impose provisional tariffs.

The announcement comes after the EU pressed ahead with tariffs on Chinesemade EV following a split vote.

Pernod Ricard shares fell 4, while those of Remy Cointreau had lost 8.3 by 0750 GMT, on track for their worst singleday drops in 11 and 10 months respectively. The losses have so far wiped roughly a combined 1.7 billion euros 1.9 billion off their market values.

Neither company was immediately available to comment.

Jefferies analysts estimated in a note to clients that the tariffs could translate into a 20 consumer price increase, which in turn would probably turn into a 20 decline in volume and supplier sales.

Pernod Ricard is the only player in China with access to a full spirits portfolio with integrated distribution, which should allow it to better navigate this uncertain environment, the analysts added.

Hennessy cognac maker LVMH dropped 4.3 amid a wider selloff in luxury stocks, as Hermes, Kering, Ferragamo and Burberry lost 2.46.8 on concerns the tariffs might spill over to luxury items and cars.

There is a fear that, after brandy, it will be the turn of the luxury…