The European Union says it will provisionally impose additional duties of up to 38.1 percent on imported Chinese electric vehicles.

The European Commission announced the measure on Wednesday. It says prices of Chinese EVs are kept down through state subsidies for manufacturers, and the practice could harm European companies.

The commission says the duties are set to apply on July 4 if no improvements are made through negotiations with Chinese authorities.

In May, US President Joe Biden's administration announced that it would raise tariffs on Chinese EVs from 25 percent to 100. It said overproduction of subsidized products by Beijing was threatening US businesses and workers.