China is studying raising tariffs on large-engine vehicles and will start collecting duties on brandy from Europe, escalating a trade spat after the European Union decided to impose tariffs on Chinese electric vehicles.

Martell, Remy Martin and Hennessy will be expected to pay at least a 30 per cent ‘security charges’ for imports into China, the Ministry of Commerce said on Tuesday.

Chinese drinkers may pay more for Remy Martin and other European brandies after the government announced provisional tariffs of 30.6% to 39% on Tuesday.