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Global Newsphere > International > China looks to Europe after US slaps hefty tariffs
China looks to Europe after US slaps hefty tariffs
International

China looks to Europe after US slaps hefty tariffs

April 6, 2025 3 Min Read
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Tensions in China-EU trade have been growing as Brussels embrace a potential flood of redirected Chinese exports after new US tariffs. Credits: Shotterstock, Svet Foto

Brussels is now in the midst of a 54% tariff as the US is driving Chinese imports.

Fear? Products aimed at the US can directly look to the EU market. This puts pressure on European companies already navigating the tricky oceans.

Steel, solar panels, electronics and electric vehicles are just a few of the items the EU maintains tabs as staff are responsible for potential trade fallouts.

“I’ve seen this before. When the US closes the door, some of that overflows put our path in our heads,” said a senior EU official.

As technology exports from China continue closely, steel is on the list

Steel is big. And when the cooling of the Chinese building boom is turned off, there’s plenty of room. According to the OECD, global steel overcapacity is heading towards 721 million tons by 2027. This is more than five times the current production in Europe.

That excess has to go somewhere – and Brussels is worried that it will end here.

It’s not just steel. Solar panels, wind turbines and electronics are also shining spotlights. Analysts say if China is struggling to find buyers elsewhere, these items could be next lined up to head west.

“Electric vehicles are already facing tariffs in the EU, but we can see a huge surge in supply,” said Alicia Garcia Herrero of Bruegel think tanks.

The EU prepares trade defenses for Chinese imports as looms

The EU is not planning to sit and flood the imports to hit the coast. Tools previously used by the EU – can be brought back again. These allow Brussels to suddenly surge and temporarily restrict certain imports if it threatens local industries.

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“We’ve been working on steel safeguards since this last happened in 2017,” the same official said. “We are now focusing our eyes on whether other sectors need similar protections.”

EU trade teams are on alert as more tariffs come into effect on April 5 and 9. A message from Brussels? We are open for business, but we are not making any sacrifices.

Find more news in Europe

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