New Delhi

The European Union will attach tariffs of up to 37.6 per cent on all-electric cars imported from China starting this Friday. This comes at a time when trade friction is rising between the economic giants.

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The EU Commission claims that the Chinese government is distorting the market by excessively subsidising the country's EV industry, creating unfair competition within the European single market that threatens the destruction of the car manufacturers.

The EU Commission, the executive arm of the bloc, will impose provisional duties of between 17.4 per cent and 37.6 per cent to fend off the evolvement into solar panels ten years ago when limited action against Chinese imports collapsed a host of European manufacturers.

China has already warned of further counter-tariffs on European trade, covering products such as cognac and pork.

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"Talks should be ongoing during the four-month provisional  .with a view to a possible settlement before any definitive duties are to be imposed by the EU," China's commerce ministry spokesman, He Yadong, told the news agency.

Carmakers such as BYD, Geely, and SAIC are to be hit with the highest tariffs, but those regarded as having cooperated with the EU investigation, including Tesla and BMW, will be slightly lower.

The bloc calculates that Chinese EV brands have added market share, growing from less than 1 per cent in 2019 to 8 per cent now, and say they could account for 15 per cent by 2025, often at prices 20 per cent lower than European models.

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Downplayed by the Chinese Passenger Car Association, these tariffs were going to take their toll moderately on most Chinese firms.

This development is occurring barely three weeks after the US is going to instigate a 100 per cent tariff on Chinese imports of emergent electric vehicles, making the point in the background of the fierce message of global competition in an energy vehicle market.

(With inputs from Reuters)