(Reuters) - Shares in European car manufacturers dropped on Wednesday, led by declines in major brands such as Volkswagen and BMW, after reports the European Commission will impose tariffs on imported Chinese electric vehicles from next month.

The Commission will notify car makers on Wednesday that it will provisionally apply additional duties of up to 25% on imported Chinese electric vehicles from next month, the Financial Times reported, citing people familiar with the matter.

"The main factor is the imminent announcement of tariffs on EVs from China. Not the tariffs per se, but the likely retaliation from China." Daniel Schwarz, analyst at Stifel, said in a note.

The STOXX carmakers index was last down 1.4%. Volkswagen and BMW, down 2.3%-2.4%, are among the worst performers of Germany's blue chip index. Luxury German manufacturer Porsche Holding was down over 7% as it traded ex-dividend.

Philippe Houchois, an analyst from Jefferies, said German carmakers were getting hit by the threat of EU tariffs on China. "Fear of retaliation," he said.

Adding to early pressure on car shares, was news of possible lawsuits in Britain over emissions tests that could cost companies over $7.5 billion.

Lawyers for the claimants, owners of diesel vehicles, told London's High Court on Tuesday some of the world's biggest carmakers are facing 1.5 million lawsuits in Britain.

On Tuesday, spokespeople for Mercedes Benz and U.S. carmaker Ford said they saw "no merit" in the claims.

($1 = 0.7848 pounds)

(Reporting by Tristan Veyet in Gdansk; additional reporting by Gilles Guillaume; Editing by Amanda Cooper, Louise Heavens and Ros Russell)