EU weighs tariffs and new trade tools as China deficit tops €1 billion a day
What's next: EU leaders meeting June 18 in Brussels are set to map out trade talks with Beijing and supply-chain moves in critical sectors.
European Union leaders are preparing to discuss possible tariffs and other trade tools in talks on June 18 as the bloc hardens its response to China’s growing trade imbalance. EU capitals broadly agree that Beijing’s trade practices pose an economic risk, with the bloc’s deficit with China now running above €1 billion a day, driven in part by subsidized exports. The EU is also concerned about China’s dominance in critical minerals and chips. Trade chief Maros Sefcovic has called the relationship “simply not sustainable,” while French President Emmanuel Macron has warned the bloc could take strong measures if the gap is not addressed. Even so, some member states argue shifting supply chains away from China will take years.