China is escalating its probe into claims that European companies are flooding the country with brandy that is priced well below market value.  

CNN reports that China's Ministry of Commerce has a hearing set for July 18 to look into anti-dumping allegations over brandy imported from Europe. The hearing could signal possible tariffs down the line, with the biggest impact likely to be felt by France, where China gets 99% of its imported brandy. 

This comes in the wake of new European Union tariffs of up to 38% on imported Chinese electric vehicles, which came into effect on July 5. A lengthy investigation from the EU found that subsidies from the Chinese government had helped them undercut the EU market with low-priced EVs. China has threatened to retaliate in a number of ways ever since the tariffs were first announced, having opened anti-dumping probes into imported EU pork as well as brandy. 

The EU's tariffs on Chinese EVs are currently provisional. Both sides are expected to continue negotiating on a possible new agreement before the tariffs become permanent in November.