EU prepares new tariffs on Chinese goods as trade tensions rise

Traders Union
All News
Geopolitics & Trade
EU targets Chinese imports

Highlights

EU considers new China import curbs in early 2027.
Chemicals, furniture, and machinery face scrutiny.
Brussels seeks to reduce its €360 billion trade gap.

The European Commission is considering import quotas and tariffs, with proposals potentially arriving in the first quarter of next year. The plans remain subject to discussions with EU governments and Beijing, meaning the products covered and the final restrictions could change, Bloomberg reports.

Brussels targets a widening trade imbalance

The proposed measures form part of an effort to reduce the EU trade deficit with China, which reached €360 billion ($404 billion) in 2025. European manufacturers have faced growing competition from lower-cost Chinese imports, particularly in industries struggling with weak demand and excess production capacity.

Safeguard rules allow the EU to restrict imports when a sharp increase in shipments threatens domestic producers. Brussels is reviewing trade data to identify eligible sectors and could impose fixed quotas or additional duties once imports exceed specified volumes.

The commission is seeking to protect European industry without provoking a broader trade conflict. China has warned against further economic pressure and recently opened an anti-dumping investigation into imports of p-nitrotoluene, a chemical used in several industrial applications.

Hybrid vehicle agreement provides a model

Brussels recently reached an agreement with Beijing to limit Chinese hybrid vehicle imports to 350,000 units annually. The commission intends to propose implementing measures in the coming weeks, with the restrictions expected to begin in December.

The vehicle arrangement would last four years, with China's quota increasing by 6% annually after the initial year. Similar arrangements are expected for vehicles imported from other countries, including Japan and South Korea.

The EU is also preparing proposals before mid-December to diversify supply chains and respond more quickly to coercive trade practices. These instruments could provide additional ways to restrict access to the European single market.

New trade barriers raise economic stakes

The planned restrictions would extend European trade defenses beyond automobiles and steel into industries supplying consumer products and manufacturing equipment. Their potential scope matters because China's trade surplus with the bloc now exceeds $1 billion a day.

EU Trade Commissioner Maros Sefcovic is expected to discuss further steps with Chinese counterparts early next year. Negotiations also cover improved access for European exporters and easier shipments of critical minerals and permanent magnets.

For European companies, import restrictions could provide relief from pricing pressure but also raise costs for businesses dependent on Chinese materials and equipment. The outcome will depend on how narrowly Brussels designs the measures and whether Beijing responds with additional barriers.

We also reported EU prepares tougher trade measures to counter a surge in Chinese imports.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.