The European Union is preparing for potential retaliation from China following the bloc's decision to impose tariffs on Chinese electric vehicles (EVs). The move, aimed at countering what the EU perceives as unfair trade practices, has sparked concerns of a trade war.

The EU's decision, supported by ten member states including France and Italy, imposes tariffs of up to 45% on Chinese EV imports. However, the vote revealed significant divisions within the bloc, with five countries, including Germany, opposing the measure, and twelve abstaining.

China's Ministry of Commerce has condemned the tariffs as "unfair, non-compliant, and unreasonable," and hinted at possible retaliatory measures. Industries in countries that supported the tariffs, such as French cognac producers, are particularly worried. Cognac France, a major exporter to China, fears that Beijing might impose a 40% tax on their products, which could severely impact their market.

German carmakers, heavily reliant on exports, also express concerns. Hildegard Mueller, president of the German Association of the Automotive Industry, warned that the tariffs could lead to a spiral of protectionism, harming the European automotive industry.

As the EU braces for China's response, the situation underscores the complexities of global trade and the delicate balance required to protect domestic industries while avoiding international conflicts.