The trade conflict between China and the Western nations is intensifying. Following recent tariffs imposed by the EU and the United States, China is signaling potential retaliatory measures.

Chinese media have hinted that in response to tariffs on Chinese electric vehicles, China may impose new duties on imported cars and European brandy. Reports suggest that Beijing is considering tariffs on cars with engines larger than 2.5 liters. Analysts believe this move would primarily impact German car manufacturers, who export luxury vehicles to China.

German automakers have opposed the European Union's new import tariffs, fearing it could restrict their market access in China. According to state media, Europe exports $18 billion worth of cars with over 2.5-liter engines to China annually.

The European Commission announced additional tariffs on Chinese-made electric vehicles this week, citing concerns over significant government subsidies that distort competition. These tariffs are set to take effect next month.