German Chancellor Olaf Scholz has told reporters, international business leaders, and politicians that talks to find the best deal on proposed European Union tariffs on Chinese-made electric vehicles (EVs) need to continue.

Speaking at the Berlin Global Dialogue (BGD), Chancellor Scholz said, "Negotiations with China on electric vehicles must continue…. We as the EU must not harm ourselves in trade conflicts."

EU member states will vote on the proposed tariffs in Brussels on Friday morning. It could see an additional 38 percent levied in import duties on EVs manufactured in China. 

Brussels argues that Beijing provides unfair subsidies to EV manufacturers that allow Chinese products to be sold at a price that undercuts those vehicles made in Europe.

German auto giant BMW's CEO Oliver Zipse has encouraged Chancellor Scholz and his coalition government to tread a diplomatic path to ensure that organizations like his do not get caught in the crossfire should China respond in kind.