Auto manufacturers competing to persuade drivers to go electric are rolling out cheaper, more tech-rich models at the Paris Motor Show.

China is investigating whether to raise tariffs on European large-engine vehicles and will start collecting levies on brandy, escalating a trade spat after the European Union decided to impose tariffs on Chinese electric vehicles.

The European Union wants a level playing field with China on car tariffs and is negotiating with Beijing on mechanisms such as price commitments or investments in Europe as a solution, European Commission chief Ursula von der Leyen said on Monday.

Beijing’s action came days after European nations moved toward tariffs on electric vehicles from China, and it included a threat to also hit pork and car imports.

General Motors Co. sold more electric vehicles and plug-in hybrids than conventional gasoline cars in China for the first time last quarter, though the milestone comes as total deliveries continue to fall.

Chinese and European automakers face off at the Paris car show amid EU plans for hefty import tariffs on Chinese EVs. Chinese brands caution higher prices could dissuade consumers while pushing forward with European market expansions,

The European Union is expected to support wielding tariffs on electric vehicles made in China, seeking to prevent unfair competition.

Chinese and European automakers went head-to-head at the Paris car show on Monday, with tensions running high as the EU gears up to impose hefty import tariffs on Chinese-made electric vehicles and the industry struggles with weak demand.