Europe on Alert for Influx of Cheap Chinese Goods After Trump’s New Tariffs

EU Officials Prepare Emergency Measures to Guard Against Influx of Chinese Goods

EU officials are in the process of preparing emergency measures to prevent a direct surge of Chinese-made goods or a massive influx of Chinese goods transshipped through other Asian countries, which could potentially impact the European market.

According to a report by the Financial Times on Friday, analysts have warned that following U.S. President Trump’s widespread imposition of tariffs on various countries, a significant amount of low-priced Chinese goods may redirect towards Europe. In light of this, the EU is contemplating measures to defend against the wave of cheap goods coming from Asia.

President Trump has already imposed a 20% tariff on EU products, causing distress among EU manufacturers due to additional tariffs on American cars and steel.

Now, faced with the impact of a new round of tariffs from the U.S., the EU not only needs to address its own repercussions but also safeguard against the pressure of Chinese goods, particularly in the electrical and mechanical equipment sectors. As Trump has concurrently imposed higher new tariffs on China and other economic entities such as Vietnam (at 34% and 46% respectively, higher than the EU), a large quantity of Chinese goods or products transshipped from China to other Asian countries may flood into the barrierless European market.

Economist Andrzej Szczepaniak from Nomura Securities stated that due to the significantly higher-than-expected new tariffs on China by the U.S., the risk of China dumping goods onto Europe has drastically increased.

The Financial Times reported that officials have indicated that the EU Commission is preparing new emergency tariffs to address this situation and have already intensified monitoring of import flows.

A senior EU diplomat remarked, “We may have to take protective measures in more industries. This could become another key point of tension in EU-Beijing relations. I don’t think they will change their export overcapacity model.”

The diplomat added that the EU has already imposed a 35% tariff on Chinese electric cars and may consider imposing even “higher” tariffs on other products in the future.

For the past few months, the EU has been on edge as the U.S. is contemplating imposing additional tariffs, leading Chinese manufacturers to potentially further dump goods at lower prices to gain market share in the EU.

French President Macron has cautioned that the U.S.’s high tariffs on Asian countries could lead them to shift excess production capacity to Europe, potentially causing a “huge impact” on the continent’s industry.

Officials have stated they are ready to take action. “We can close off the market due to a sudden surge of unexpected imports,” said a senior official from the EU Commission. “We have already taken protective measures in the steel industry for some time; we will see if similar measures need to be implemented in other sectors.”