Hungarian Prime Minister Viktor Orban slammed the European Union for what he said was a failure to take into account the interests of the continent’s car industry in setting environmental goals.

The European Union risks entering an “economic cold war” with China, Hungary's prime minister said on Friday, pledging to vote against an EU plan to impose higher tariffs on the import of Chinese electric vehicles.

Hungarian Prime Minister Viktor Orban warned on Friday that the European Union was headed for an "economic cold war" with China as the bloc's leaders prepared for a pivotal vote on imposing tariffs on imports of Chinese-made electric cars (EVs).

The European Union is bracing for retaliation from China after the bloc voted last week to impose tariffs on the import of Chinese electric vehicles, or EVs, amid speculation that Beijing could seek to target individual European countries that voted for the measures.

The Volkswagen Group is expressing strong opposition to the European Union's potential implementation of tariffs on Chinese electric vehicles (EVs), joining forces with other major automakers like Mercedes and BMW in this plea.

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.

Ten EU member countries voted in favor of tariffs on Chinese-made electric vehicles while five opposed them. Germany, Europe’s largest economy, voted against the tariff hikes, raising concerns about potential trade retaliation.

The European Commission has voted to raise tariffs on Chinese electric vehicles. China has threatened to retaliate -- but will they?