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 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.

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.

Hennessy staff extended a strike on Wednesday over its plans to bottle cognac in China to circumvent import tariffs, after French President Emmanuel Macron urged his Chinese counterpart Xi Jinping to lift the duties.

Workers at distilleries Maisons Hennessey, Remy Martin, Courvoisier and Martell plan to go on strike next week over fears that the industry could relocate its bottling business to China in a bid to circumvent import tariffs.