China is considering raising tariffs on large-engine vehicles imported from Europe and will begin collecting levies on brandy, escalating tensions after the European Union (EU) imposed tariffs of up to 45% on Chinese electric vehicles. The Chinese Ministry of Commerce announced plans to investigate increasing duties on these vehicles while importers of EU brandy will face a deposit of up to 39% starting October 11. These retaliatory measures come amid ongoing trade disputes that have strained China-EU relations, with European companies experiencing significant stock declines. The EU plans to challenge China’s brandy tariffs at the World Trade Organization, arguing that the measures are unjustified. Additionally, the EU’s economy chief downplayed the risk of a retaliatory trade war, despite concerns from European automakers who may be disproportionately affected. With the EU set to finalize its electric vehicle investigation by the end of the month, the situation continues to unfold against the backdrop of China’s domestic economic pressures and its efforts to meet growth targets.