The European Commission will impose additional tariffs of between 17.4% to 38.1% on electric cars produced in China.

The move follows preliminary findings from its anti-subsidy investigation which confirmed its suspicions that Chinese state support is distorting prices.

Now UK auto industry observers will watch to see if the UK takes similar steps.

“The value chain of Chinese electric cars benefits from unfair subsidisation, which poses a threat of economic injury to EU battery electric vehicle producers,” stated EU Commission vice-president Margaritis Schinas, announding the tariff plan.

“When our partners breach the rules, we will assert our rights,” added executive vice-president Valdis Dombrovskis who said the anti-subsidy investigation is based on clear evidence under the global system of trade rules.