By Casey Hall SHANGHAI (Reuters) - European luxury shares have slid on investor concerns that Hermes handbags and Dior slingbacks may be Beijing's next targets for retaliation, following the EU's decision to slap tariffs on China EVs,

STORY: Brandy producers are facing a disaster in France’s Cognac region amid a trade dispute.China is targeting the local brandy trade in tit-for-tat measures, days after the EU voted for tariffs on Chinese-made EVs.

European luxury shares have seen a significant drop, driven by investor fears that iconic brands such as Hermes handbags and Dior shoes might become the next casualties in the ongoing China-EU trade conflict.

China's anti-dumping measures against brandies imported from the European Union are "legitimate trade remedy measures", the commerce ministry said on Wednesday, a day after imposing the temporary curb.

Beijing said preliminary findings of an investigation had determined that dumping of brandy from the European Union threatens ‘substantial damage’ to its own sector