France and China are nearing an agreement on minimum import prices for French cognac, a key export facing average tariffs of 34% from China. French officials, including Industry Minister Marc Ferracci, have expressed cautious optimism about the progress in negotiations, though they acknowledge that major issues remain unresolved. The discussions are linked to broader trade talks between China and Europe, particularly concerning electric vehicle (EV) tariffs. Beijing has tied the cognac deal to advances in EV tariff negotiations with Europe. French authorities hope to finalize the agreement in the coming days to avoid the imposition of punitive tariffs on major European brandy producers such as Hennessy and Remy Martin. Meanwhile, Ferracci has indicated that agreeing to a 10% tariff on European exports to the U.S. would be unfavorable, signaling reluctance toward potential compromises with Washington. The trade dispute over European brandy imports is part of a larger context of tariff assaults from China and the U.S. on European luxury drink exports. Despite progress, French officials emphasize that significant challenges remain before a comprehensive resolution can be reached.