Hennessy backed down from a test of bottling Cognac in China as a way around tariffs after workers at the LVMH label in France went on strike last week in protest.

On Tuesday, Bloomberg reported that Hennessy owner LVMH is temporarily halting plans to bottle its cognac in China. The move comes days after nearly 600 workers walked off the job in protest of the rumored scheme,

French cognac maker Hennessy has suspended a plan to bottle its brandy in China to avoid import tariffs, staff briefed by management said on Tuesday, after hundreds of workers went on strike last week to protest the move.

Workers at French cognac maker Hennessy protested Thursday against the brand's plans to export the drink in vats rather than bottles to get around Chinese tariffs. While management announced Monday

The turmoil of a trade war between China and Europe burst open this week as hundreds of employees at the Hennessy cognac factory in southwest France on Wednesday walked off the job for a second day to protest what unions said were plans to move brandy bottling to China.

Hennessy is studying a plan to bottle cognac in China, the company owned by French luxury giant LVMH said on Tuesday, prompting hundreds of workers at its plant in southwestern France to go on strike.

The move follows talks between French and Chinese leaders, with the plan potentially resuming if negotiations fail.

Cognac workers threatened to resume strikes next week after LVMH’s Hennessy said it’s studying the option of bottling in China in a bid to avoid tariffs the country recently imposed on European brandy.

LVMH has reportedly “suspended” its controversial plan to ship Hennessy Cognac in bulk to China for bottling. According to specialist French news site Terre de Vins, the luxury-goods group has halted the plan,