EU tariffs gain support as Europe weighs barriers against Chinese imports

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EU tariffs on Chinese imports

Highlights

EU policymakers are considering new tariffs, quotas, and the Industrial Accelerator Act to curb Chinese imports and protect strategic industries, with proposals set for discussion on May 29.
A recent study links China's increasing export share to euro area industrial underperformance since 2018, with German output especially weak and Chinese capital goods exports to Germany outpacing imports since mid-2025.
Retaliation risk remains high as the EU debates countermeasures such as limiting Chinese access to specialized inputs and restricting ownership of EU port terminals, requiring strong political consensus.

Trade policy debate before Commission meeting

As reported by Financial Times, the case for a tougher EU trade stance rests on the view that the rules-based system no longer offers an effective answer to China’s export strength and the pressure it puts on European industry. The commentary argues that Europe should adapt by using tariffs and other barriers more deliberately to protect industrial capacity and reduce strategic vulnerability.

The pressure is especially visible in Germany, where industrial production has been falling since 2018, and in the wider euro area, where exports have recently weakened. Expensive energy and burdensome regulation are cited as part of the problem, but the article says China’s export machine is also weighing on Europe’s industrial performance.

A recent paper by Sander Tordoir and Brad Setser is highlighted as evidence that Chinese export gains have coincided with euro area underperformance. In sectors where China’s export share has increased in recent years, German output has been particularly weak, while China’s imports have shown little growth over the past five years and, since mid-2025, the country has sold more capital goods to Germany than it has bought.

Policy ideas circulating before a European Commission meeting on May 29 include rules to push companies toward a broader supplier base, along with quotas or duties where supply is highly concentrated. The Industrial Accelerator Act under negotiation could also curb Chinese companies’ access to public procurement or disadvantage them in subsidy decisions, while Tordoir and Setser propose a European version of U.S. Section 301 powers to investigate and respond to what they describe as economy-wide distortions.

Industrial risks and retaliation concerns

Supporters of trade barriers argue that cheap Chinese goods may help consumers in the short term, but they also bring broader economic and strategic risks. The concerns include potential job losses, reduced ability to rebuild industrial capacity in a military emergency, and greater exposure to coercion if Europe becomes too reliant on Chinese suppliers.

Resistance remains, particularly in Germany, where some policymakers and multinational companies are still wary of embracing trade barriers fully. Critics point to the U.S. experience, where tariffs raise costs for importers and consumers, restrict access to low-cost inputs, and can deter investment by increasing uncertainty.

The article argues that any European response should be calmer and more methodical than the Trump administration’s approach, with measures tied where possible to import surges or excessive concentration rather than broad unilateral action. It also suggests the EU should remain open to trusted partners while pushing them to prevent diversion of Chinese goods into third markets.

Retaliation is presented as the most serious risk, but the EU is described as having potential countermeasures if it can build political support. A paper by Tobias Gehrke is cited as outlining options that include limiting China’s access to specialised industrial inputs and restricting Chinese ownership of EU port terminals.

Our earlier coverage of the EU’s draft tech sovereignty strategy outlined Brussels’ plan to cut reliance on foreign providers in cloud computing, AI and semiconductors by boosting domestic capacity and backing European alternatives. The proposal included a Cloud and AI Development Act to rapidly expand data-centre capacity, plus a renewed chips-law push to stimulate EU chip demand and manufacturing through measures such as offtake agreements.

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