French cognac makers experienced a surge in their stock prices following French President Emmanuel Macron's indications that trade tensions with China might ease. 

Following a meeting in France, CNBC reported that Macron was willing to address and resolve concerns related to importing cognac into China, just after gifting Xi Jinping a top-range bottle of French cognac reportedly retailing at over $3,200.

Previously, China had conducted investigations into potential dumping of European spirits, which raised concerns about the imposition of tariffs on these products. 

In response to these concerns, Macron engaged in diplomatic efforts to ease tensions and address trade strains between China and Europe.

READ NEXT: Xi Jinping Urges France to Resist 'New Cold War' Amid EU's Shift Towards US Alliance

Effects of Improved Trade Relations Between China And France

The possibility of improved trade relations between China and France ultimately led to a surge in the stock prices of French cognac makers, such as Pernod Ricard and Remy Cointreau, to 2. % and 7.6%, respectively. 

The Bureau National Interprofessionnel du Cognac (BNIC), representing the French cognac industry, pressed the importance additional tariffs would have on the region's economy. Over 95% of European brandy exported to China originates from the French Cognac and Armagnac regions, and 32 million bottles of cognac were exported from France to China in 2023 alone.

Despite the optimism, stakeholders await confirmation regarding imposing additional taxes on cognac producers in the Chinese market.

READ MORE: China's Xi Jinping Arrives in France Amid EU Trade Tariff Row