China is investigating whether to raise tariffs on European large-engine vehicles and will start collecting levies on brandy, escalating a trade spat after the European Union decided to impose tariffs on Chinese electric vehicles.

German Chancellor Olaf Scholz's rejection of EU tariffs on Chinese electric vehicles failed to stop fellow European Union members voting in favour, exposing how a divided Berlin is struggling to drive EU policy.

China has imposed anti-dumping policies on EU brandy following the bloc's vote to impose tariffs on Chinese EVs last week. The move is being seen as a retaliatory measure and could fuel fears that a US-style trade war with China has arrived in Europe.

The EU conformed its decision to raise tariffs on Chinese EVs, leading to worries this might raise trade tensions.

China has initiated a trade dispute with Turkey at the World Trade Organization over tariffs on electric vehicles. Beijing claims these tariffs are discriminatory and violate WTO rules. Turkey recently imposed additional tariffs and conditions on Chinese vehicles.

The European Union unleashed one of its most powerful economic tools on China, imposing tariffs on electric vehicles in a move that increases the risk of retaliatory measures and backfiring on domestic consumers and companies.

STORY: Trade tensions between China and the European Union ramped up again on Tuesday (October 8).Beijing imposed temporary anti-dumping measures on brandy imports from the bloc.The move hits top spirits brands like Hennessy and Remy Martin.

The European Union’s decision to impose tariffs on Chinese electric vehicles has moved the focus to how and when Beijing will retaliate for the escalation in its biggest trade dispute with the bloc in years.

The European Commission's decision to press ahead with tariffs on Chinese-made electric vehicles threatens to undermine decades of cooperation between China and the EU, and endangers climate-change goals,

On Friday, the EU said it would push forward with hefty tariffs on China-made EVs, even after the bloc's largest economy Germany rejected them. The dispute is its biggest trade row with Beijing in a decade.