German Chancellor Olaf Scholz's rejection of EU tariffs on Chinese electric vehicles failed to stop fellow European Union members voting in favour, exposing how a divided Berlin is struggling to drive EU policy.

The European Union’s decision to impose tariffs on Chinese electric vehicles has moved the focus to how and when Beijing will retaliate for the escalation in its biggest trade dispute with the bloc in years.

The European Union voted to impose more tariffs on Chinese-made electric vehicles (EVs), risking further retaliation from Beijing, which in August launched an anti-subsidy investigation into EU dairy imports.